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ATFA Disappointed by German Court Decision Opposing Argentine Debt Payment
Press Release
December 22, 2006

WASHINGTON, DC - Today, the American Task Force Argentina (ATFA) expressed disappointment over a German court's decision rejecting a request for Argentina to repay more than $1 million owed to a German citizen holding delinquent Argentine bonds.

According to German press reports, Germany's Constitutional Court in Karlsruhe ruled that Argentina was not obliged to repay 770,000 euros to a German citizen, citing diplomatic immunity for Argentine government assets in Germany.

"This court decision may reinforce Argentina's defiance when it comes to honoring its sovereign debt obligations," said Dr. Robert Shapiro, ATFA co-chairman. "Governments should make it clear that Argentina's refusal to honor its debts will only further damage its prospects of attracting international investment and weaken confidence in its economic future."

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 the subsequent restructuring cost investors and taxpayers worldwide about $140 billion. More than US$20 billion in bonds remain outstanding.

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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