Business Wire
Wednesday, July 17, 2013
WASHINGTON--(BUSINESS WIRE)--Yesterday, IMF Chief Christine Lagarde disclosed her determination for the IMF to file an amicus curiae brief with the U.S. Supreme Court in a case based exclusively on the interpretation of U.S. federal law. In addition to improperly inserting the IMF into a domestic legal matter, Lagarde's decision effectively asks all member countries of the IMF to actively support the Republic of Argentina in court.
“Were the IMF's Board to approve this request, informed IMF watchers assure me that it would represent an unprecedented power grab by the Fund – an attempt to end-run around the government of the United States in a domestic legal matter”
Argentina, in default on more than 100 court judgments and recently sanctioned by the IMF for falsifying economic statistics, has appealed to the Supreme Court despite recently announcing in court that it "does not have to cooperate" with the judgments of any U.S. court.
"Were the IMF's Board to approve this request, informed IMF watchers assure me that it would represent an unprecedented power grab by the Fund – an attempt to end-run around the government of the United States in a domestic legal matter," said ATFA Executive Director Robert Raben. "This is a New York case involving New York law bonds, exclusively subject to U.S. Courts."
"Furthermore, the only legal issue that could be reviewed by the Supreme Court is the interpretation of a U.S. federal statute; the issue of sovereign debts or the restructuring of debts is not under review," Raben added. "It is hard to imagine any other country tolerating the IMF's interference in a dispute about its court system's ability to do its job."
Members of Congress from both political parties have strongly condemned Argentina's "contempt for the U.S. legal system" and "open defiance of international norms."
Lagarde's move comes after a recent IMF report incorrectly stated that "creditors have long pursued Argentina for payment on the full amount of defaulted bonds."
In fact, creditors have reached out numerous times – including several occasions in the last six months – to conduct good-faith negotiations with Argentina. Argentina has refused every single gesture.
IMF support for Argentina in this matter would appear to violate the IMF's own principles of debt resolution and would make it less likely that Argentina ever engages in a negotiation over its unpaid debts.
Given Argentina's poor track record in paying its debts to numerous IMF member countries, and given the harsh comments by officials of several IMF member countries regarding Argentina's failure to resolve its debts, ATFA urged the IMF not to prolong Argentina's refusal to engage with its creditors.
Financial Times
Thursday, July 18, 2013
By Jude Webber
A lobby for “holdouts” in Argentina’s long-running debt battle with its defaulted creditors has urged its supporters to challenge IMF plans to file an amicus curiae brief supporting Argentina’s bid for a US Supreme Court appeal of a landmark debt ruling last year.
In a letter sent to supporters, the American Task Force Argentina said the IMF head Christine Lagarde “has announced her intention to file an amicus curiae from the IMF in support of Argentina’s recent petition to the Supreme Court”.
MercoPress
Thursday, July 18, 2013
Argentina is seeking to void an October 2012 ruling by the 2nd US Circuit Court of Appeals in New York that found it had violated a clause in its sovereign bond documents, known as pari passu, and requiring it to treat all creditors equally.
In a letter sent to the holdout investors on Tuesday, IMF Managing Director Christine Lagarde informed the plaintiffs of her intention to recommend to the executive board that the fund file the amicus curiae, or friend-of-the-court brief, by the July 26th deadline, advocates for the holdouts said on Wednesday.
Bloomberg
Wednesday, July 17, 2013
By Katia Porzecanski and Sandrine Rastello
The International Monetary Fund is considering supporting Argentina in its request to the U.S. Supreme Court for a review of a lower-court ruling in its legal battle over its defaulted debt, according to two people familiar with the matter.
IMF Managing Director Christine Lagarde will ask the fund’s executive board to submit a friend-of-the-court brief in support of Argentina’s June 24 petition to the Supreme Court to take a case involving holdout creditors from the nation’s $95 billion default in 2001, two people familiar with the request said.
Reuters
Wednesday, July 17, 2013
By Daniel Bases
(Reuters) - In an unprecedented move, the International Monetary Fund plans to ask the U.S. Supreme Court to review Argentina's case in a decade-old legal battle with holdout creditors, because of the implications it could have on sovereign debt restructurings.
Argentina is seeking to void an October 2012 ruling by the 2nd U.S. Circuit Court of Appeals in New York that found it had violated a clause in its sovereign bond documents, known as pari passu, and requiring it to treat all creditors equally.
Wall Street Journal
Wednesday, July 17, 2013
By Ian Talley and Thomas Catan
WASHINGTON—The International Monetary Fund is preparing to back Argentina in a long-running legal battle with hedge funds that has broad repercussions for how governments around the world deal with their creditors.
IMF Managing Director Christine Lagarde plans to recommend to the fund's executive board next week that the IMF file a brief with the U.S. Supreme Court asking it to take the case for review and overturn a lower court's ruling, according to people familiar with the matter.
Wall Street Journal
Wednesday, July 17, 2013
By Prabha Natarajan
Argentina's bond prices surged on the news that it may get the backing of the International Monetary Fund in its debt case.
After market close, news broke that the IMF is preparing to back Argentina and may file a brief in support of the sovereign's petition in the Supreme Court that requests an overturn of a lower court's ruling.
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