Argentina Debt Crisis Sets Dangerous Vulture Fund Precedent

TeleSur

Argentina Debt Crisis Sets Dangerous Vulture Fund Precedent

Argentina’s over decade-long holdout debt crisis has set a dangerous precedent that will embolden predatory creditors to exploit vulnerable countries in economic distress, a U.N. debt expert told teleSUR. And the win for holdout creditors, or "vulture funds," will also pave the way for U.S. corporations to further profit off Argentina.

“The message that this court case says to Wall Street and illegitimate investors is that it is to your advantage to hold out, and it’s to your advantage to attack a country that is facing financial distress or economic crisis,” Jubilee USA Network's Executive Director Eric LeCompte told teleSUR by phone. “That precedent is a very bad precedent and it is going to impact some of the poorest countries in the world who don’t have the financial resources that Argentina did to stand up to these holdouts.” […]

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