Economists call on US Congress to act against vulture funds
UK law could help resolve Argentina debt dispute
Over 100 economists, including Nobel laureate Robert Solow, Branko Milanovic and Dani Rodrik, have written to the US Congress calling on them to pass legislation to mitigate fallout from the court judgement against Argentina in favour of vulture funds.(1) The letter references the law passed in the UK in 2010 against vulture funds, following the campaign by Jubilee Debt Campaign.
Tim Jones, policy officer at Jubilee Debt Campaign said:
“We strongly welcome this call for legislation in the US to curb the impact of vulture funds. In 2010, the British parliament passed a law which makes vulture funds comply with internationally agreed debt restructuring for 40 impoverished countries. The US Congress and UK parliament should do the same in the case of Argentina, so that all creditors have to accept the 2005 agreed debt restructuring.”
The UK Debt Relief (Developing Countries) Act says that companies cannot sue one of the 40 Heavily Indebted Poor Countries (primarily African countries) in UK courts for more than they would have got if they had taken part in the HIPC debt restructuring. In June 2014, over 100 British MPs signed a motion calling for vulture fund legislation to be extended to Argentina, and for this experience to be shared with the United States.(2)
For more information and comment contact Jubilee Debt Campaign on +44 (0)7855 939998
Notes
1. The letter is at:
http://www.cepr.net/index.php/press-releases/press-releases/economists-call-on-congress-to-mitigate-fallout-from-ruling-on-argentine-debt
2. The Early Day Motion is at:
http://www.parliament.uk/edm/2013-14/666
