ATFA Applauds UK Government's Decision to Oppose Future Lending to Argentina

ATFA Applauds UK Government's Decision to Oppose Future Lending to Argentina International Development Secretary will vote 'NO' to Argentine loans at the World Bank and Inter-American Development Bank

Washington, D.C. – The American Task Force Argentina (ATFA) applauds the United Kingdom for its decision yesterday to oppose all future loan proposals from Argentina at the World Bank and Inter-American Development Bank (IDB). Yesterday, the Rt. Hon. Justine Greening, Secretary of State for International Development, committed in a written statement that the UK will vote against multi-lateral development bank support to Argentina:  I have instructed the UK's representatives at the Inter-American Development Bank and World Bank to vote against all new proposals for financial support to the Government of the Republic of Argentina presented by these institutions, while reserving the right to support proposals that can demonstrate exceptional benefits to the poorest people of Argentina. These are the only Multilateral Development Banks (MDBs), in which the UK is a shareholder, from which the Government of Argentina borrows. The UK must ensure that the scarce resources of the MDBs are used as effectively as possible to foster development and economic growth. In light of recent actions by the Argentine Government I am no longer confident that further investments in Argentina would be consistent with these objectives. The actions include the failure to comply with the World Bank's International Centre for Settlement of Investment Disputes rulings; failure to agree to standard IMF Article IV surveillance since 2006; and the recent IMF censure, the first of its kind, as a result of continued failure to remedy breach of data obligations under the IMF Articles of Agreement, seriously undermining our ability to properly assess proposed future loans by the MDBs. This position will be kept under review, subject to the future actions of the Government of the Republic of Argentina and its compliance with its international obligations.  (Hansard link: http://bit.ly/11GCwDP) The UK is one of several nations to adopt a position against international lending to Argentina.  The United States, Canada, France, Spain, Denmark, Finland, Austria and Germany, have all cast votes against MDB loans to Argentina in recent months; the United States has announced it will continue to do so unless Argentina normalizes relations with creditors.  The U.S. also suspended GSP trade preferences to Argentina.  "We applaud the United Kingdom for its decision to vote against future lending to Argentina," said ATFA Director  Robert Raben.  "President Kirchner has demonstrated time and again she will not listen to the international community so additional pressure is required.  This announcement sends an important signal that the U.K. government will no longer tolerate Argentina's misconduct." As of December 2012, World Bank and IDB loans to Argentina totaled more than $20 billion dollars. ###