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ATFA Calls on Argentina to Repay Delinquent Debts on 5th Anniversary of Default
Press Release
December 05, 2006

Applauds Italian Government action on behalf of "Tango Bond" holders

WASHINGTON, DC - Today, the American Task Force Argentina (ATFA) marked the 5th anniversary of Argentina's 2001 debt default by renewing calls for Argentina President Nestor Kirchner to honor his country's debt obligations and repay bondholders worldwide holding repudiated Argentine bonds. It is clear that following the last three years of historically strong growth and national reserves of more than US$28 billion, Argentina can afford to meet its obligations.

Argentina defaulted on more than US$95 billion in sovereign debt in December of 2001, the largest such default in history. According to recent analysis, the default and subsequent restructuring cost investors and governments worldwide about $140 billion. More than US$20 billion in bonds remain outstanding.

"President Kirchner should give the global investment community a reason to take another look at Argentina," said ATFA co-chairman Robert J. Shapiro. "We hope that he will see today s anniversary as an opportunity to demonstrate his country's commitment to honoring its obligations by offering fair and reasonable terms to those holding defaulted Argentine bonds."

Italy Takes Action

As part of an international effort, Dr. Shapiro conferred with Italian government and business leaders in Rome last month, discussing the importance of multi-national collaboration in pursuing an equitable restructuring and repayment of Argentina's "Tango Bonds."

After a meeting with Dr. Shapiro, Member of Parliament Benedetto Della Vedova submitted an Order of Business to the Italian Chamber of Deputies. The Order accepted for consideration notes the enormous damage done by Argentina's default and take-it-or-leave-it restructuring to the Italian economy, global markets and international lending institutions, and declares the need to pursue a more favorable restructuring of Argentina's outstanding sovereign debt. The Order also affirms the Italian Government's commitment to seek more favorable terms for the estimated 450,000 Italian citizens holding Argentine "Tango Bonds," noting "the firm political will of Italy for a solution that respects completely the international standards and agreements of sovereign defaults and debt restructurings," and "binds the government to immediately pursue all diplomatic and political channels to examine the Argentine debt restructuring."

"The Italian parliament's new efforts to seek Argentina's return to the negotiating table should be applauded and echoed by all countries affected by Argentina's take-it-or-leave-it restructuring offer," said Shapiro. "We hope that the engagement of Italy and other governments will compel President Kirchner to make a good faith effort to resolve this issue," he concluded.

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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