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The ITUC and its regional organisation for the Americas TUCA have criticised a decision by the US courts in favour of “vulture funds” seeking to extract hundreds of millions of dollars in debt-repayment. Repayment to other creditors, over 90% of which negotiated repayment deals with Argentina in 2005 and 2010, are also affected by the court decision.

“Argentina and indeed any other country must have the right to meet external obligations in a way which protects its national interests and maintains internal economic stability, and does not damage its productive capacity or its socio-economic development,” said TUCA General Secretary Victor Baez.
The ITUC is also concerned that the US decision will have a negative impact on the negotiating space for any country involved in debt restructuring, reinforcing financial speculation at the expense of the real economy.

‘”Argentina has been making steady progress on debt, and this decision from the US has not only set that progress back – it also rewards financial speculators at the expense of national economic sovereignty and most of all at the expense of ordinary people. We trust that the Court will at least heed Argentina’s request for a delay in applying the decision,” said ITUC General Secretary Sharan Burrow.

The aptly-named vulture funds specialise in buying debt of countries facing debt-servicing difficulties cheaply, then litigating to obtain vastly higher payouts from the country concerned, with disastrous economic and social consequences.

NML Capital, controlled by billionaire hedge-fund mogul Paul Singer, has reportedly opposed Argentina’s latest request to delay the application of the US court decision.