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ATFA Urges U.S., EU to Reject Argentina's Paris Club Proposal
Press Release
November 21, 2006

FOR IMMEDIATE RELEASE
Contact: info@atfa.org
1-888-662-2382
www.atfa.org

Spain Payment Scheme Violates Rules of International Lending

WASHINGTON - Today, the American Task Force Argentina (ATFA) called on the U.S. Government and governments of the European Union to refuse Argentina's proposal to allow payment of Paris Club debts owed to Spain in advance of honoring debts owed to other creditor nations.

Recent reports out of Argentina have revealed that senior representatives of President Nestor Kirchner's government are lobbying the U.S. and other Paris Club members for support of their proposal, in violation of Paris Club rules. In a letter to U.S. Secretary of Treasury Henry Paulson, ATFA Chairman Robert J. Shapiro requested that the Bush Administration decline support for Argentina's proposal, citing both economic and institutional concerns:

"Endorsing this bilateral deal would undermine the Paris Club as an institution and could destabilize established global lending frameworks. I urge you to decline Argentina's request and work to see that Argentina honors the rules of the Paris Club and its international debt obligations."

Dr. Shapiro's letter went on to urge the U.S. Government to adopt a policy that works to ensure that a reasonable settlement can be reached for all creditors affected by Argentina's default and take-it-or-leave-it restructuring in 2005.

"I further urge you to protect American lenders, taxpayers and shareholders, along with the integrity of the current system of international lending to developing countries, by clearly informing the Argentine Government that the United States considers Argentina's willingness to return to negotiations with its creditors a serious matter for our bilateral relations."

Dr. Shapiro recently returned from a week-long visit to Rome, where he discussed the financial impact of Argentina's 2001 default and restructuring on Italy, the United States and international markets with senior government officials and Italian bondholders.

ATFA, through a variety of events and research initiatives, works to encourage the United States government and other Argentine debt stakeholders to take action on behalf of American taxpayers, businesses and bondholders. ATFA's website, www.atfa.org, serves as a clearinghouse for news and information related to Argentina's restructuring and the ATFA's efforts.

Made up of major creditor groups, the ATFA is co-chaired by The Honorable Robert J. Shapiro, former Under Secretary of Commerce for Economic Affairs in the Clinton Administration and Ambassador Nancy Soderberg, Ambassador at the U.S. Mission to the United Nations in New York from 1997 to 2001.

For additional information, please visit our new website at www.atfa.org, or contact info@atfa.org, or +1-888-662-2382.

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