News Center

ATFA Reaches Out to Obama Administration Nominees
PR Newswire
December 04, 2008

Letters Detail the Argentine Debt Repayment Problem in the U.S.

American Task Force Argentina (ATFA) Co-Chairs, Nancy Soderberg and Robert Shapiro, today sent letters to President-Elect Barack Obama's nominees for Secretary of State, Secretary of the Treasury, and National Security Advisor. The letters to Senator Hillary Clinton, Federal Reserve Bank of New York President Timothy Geithner, and General Jim Jones outline a key issue facing the U.S. in its relations with a major nation in Latin America: Argentina's unpaid obligations to Americans arising out of its sovereign debt default in 2001 and subsequent repudiation of part of those debts in 2005.

"Our organization unites for the just and fair reconciliation of the Argentine government's 2001 debt default and subsequent restructuring," ATFA Co-Chairs Robert Shapiro and Nancy Soderberg stated in the letters. "Argentina's unpaid financial obligations have been rejected by courts in the United States and around the world. Investors have won numerous U.S. federal court judgments in cases brought in the Southern District of New York, yet Argentina consistently refuses to recognize or comply with the court's rulings."

During Argentina's 2005 debt restructuring, the government presented a historically low exchange worth less than 30 cents on each dollar owed. The repudiation of the debts of those holders who declined the offer have cost American investors more than $3.5 billion and lenders worldwide more than $29 billion. With over $47 billion in foreign reserves, Argentina can afford to repay what it owes.

"As a result of Argentina's poor financial decisions, it cannot borrow in foreign capital markets without being subject to the seizure of any funds raised," ATFA Co-Chairs Shapiro and Soderberg stated in the letters. "For the past two years, we have maintained productive working relationships with the State Department and the Treasury Departments in our discussions on this issue. We wanted to bring to your attention an issue of importance to the American people regarding Argentina should you speak with President Cristina Fernandez de Kirchner.

America's agricultural and export industries also have been affected by Argentina's default and restructuring. The default produced a drastic devaluation in the Argentine peso, raising the price of U.S. goods in Argentina and reducing the price of agriculture in America. Meanwhile, Argentina's subsequent repudiation of the remaining debt has kept the peso low by draining international confidence and foreign direct investment in the economy.

"We urge your administration to make debt repayment a top policy priority in its relations with Argentina," ATFA Co-Chairs Shapiro and Soderberg stated in the letters. "We look forward to continuing dialogue [on this issue] under your administration and hope that your government will continue to emphasize the need for the Kirchner government to settle with its international creditors."

Made up of an alliance of organizations, ATFA's leadership includes former Assistant Attorney General at the U.S. Department of Justice, Mr. Robert Raben, as Executive Director and 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 website at www.atfa.org, or contact media@atfa.org, or +1-888-662-2382.

U.S. Government
Takes Action

Click here to view letters by the Administration and Members of Congress on Argentina's debt and economic policies.

The Debt and Europe

Click Here To Read More

ATFA Member Spotlight

National Taxpayer's Union

Open Letter to the U.S. House of Representatives: Protect Taxpayers from Judgment-Evading Nations

Click here to view other ATFA member activity

Join Us
Show your support for ATFA and our work regarding debt default by joining our growing list of supporters.

Tell Your Friends
Do you have friends or colleagues who would be interested in supporting ATFA? Send them an invitation to this site by clicking here.