Argentina

Argentina: UN group condemns vulture funds

The Geneva-based United Nations Human Rights Council passed a resolution on Sept. 26 condemning "the activities of vulture funds" and regretting the effect payments to the funds could have "on the capacity of governments to fulfill their human rights obligations." The resolution was presented by Argentina, which was forced into technical default on July 30 after US district judge Thomas Griesa in New York blocked the country from paying interest to its bondholders unless it settled with US two hedge funds, NML Capital and Aurelius Capital Management; the two companies are known as "vulture funds," investment groups that try to profit by buying weak debt the debtors are likely to default on. Argentina's effort in Geneva was backed by Algeria, Brazil, Russia and Venezuela. The Human Rights Council approved the resolution in a 33-5 vote, with nine countries abstaining; the opposing votes came from the US, UK, Czech Republic, Germany and Japan. "Vulture funds aren't just an economic problem," said Argentine foreign minister Héctor Timerman, who was in Geneva for the vote. "They represent a political, social problem that affects the lives of all the citizens" in many countries since they deprive governments of resources they could use for social services.

Haiti: UN mission reduced; opposition grows

United Nations (UN) secretary general Ban Ki-moon plans to continue the United Nations Stabilization Mission in Haiti (MINUSTAH) one more year but wishes to cut it significantly, according to a report that the military and police mission's current head, the Trinidadian diplomat Sandra Honoré, presented to the UN Security Council on Sept. 11. Secretary General Ban recommended extending MINUSTAH for another year when its mandate ends on Oct. 15. However, the military component would be reduced to 2,370 soldiers by June 2015; currently the mission has 5,021 soldiers and 2,601 police agents, along with nearly 2,000 civilian employees and volunteers. Honoré said the Haitian National Police (PNH), which now has 10,963 agents, would be able to take over many of MINUSTAH's functions. She admitted that "[t[he reinforcement of the national police needs to be accompanied by measures for accelerating the reform of the justice system to support the construction of institutions and to improve local governance." (AlterPresse, Haiti, Sept. 12)

Argentina: US sued at Hague over default

The International Court of Justice (ICJ) in The Hague said on Aug. 7 that Argentina had asked it to take action against the US for what the South American country called "violations of Argentine sovereignty and immunities and other related violations as a result of judicial decisions adopted by US tribunals" that interfered with the payment of its debts. Financial services agencies declared Argentina in default on July 30 when it failed to arrive at a settlement with a small group of investors led by US hedge funds NML Capital and Aurelius Capital Management. A federal judge in New York, Thomas Griesa, had ruled that unless it had an arrangement with the hedge funds, Argentina couldn't make payments to the majority of its creditors, who had agreed to accept discounted exchange bonds.

Latin America: more nations recall Israel envoys

A total of five Latin American governments had recalled their ambassadors to Israel as of July 29 in an escalation of diplomatic protests against an operation the Israeli military had been carrying out in the Palestinian territory of Gaza since July 8. With the Palestinian death toll passing 1,500—including more than 300 children—centrist and even rightwing Latin American governments started joining left and center-left government in distancing themselves from the main US ally in the Middle East.

Argentina: US hedge funds force bond default

The US financial services company Standard & Poor's Ratings (S&P) declared Argentina in default the afternoon of July 30 after last-minute negotiations failed to produce an agreement between the country and a group of creditors who insisted that they be paid in full for the $1.5 billion in Argentine bonds they own. This was Argentina's second default since an economic collapse in December 2001 brought on by a decade of extreme neoliberal austerity and privatization measures. Opinions were divided on how the new default would affect the country, which was already entering a recession. "The ordinary Argentine citizen will be the real and ultimate victim," Daniel Pollack, the mediator appointed by a US federal court in New York, said in a statement. But Argentine Economy Minister Axel Kicillof was defiant. "We aren't going to sign any agreement that would jeopardize the future of Argentines," he said at a news conference after the negotiations ended on July 30.

Latin America: Gaza attack draws strong protests

An Israeli military offensive on the Palestinian territory of Gaza starting on July 8 has brought widespread condemnation from governments and activists in Latin America. The response to the current military action, which is codenamed "Operation Protective Edge," follows a pattern set during a similar December 2008-January 2009 Israeli offensive in Gaza, "Operation Cast Lead," when leftist groups and people of Arab descent mounted protests and leftist and center-left governments issued statements sharply criticizing the Israeli government.

BRICS nations plan new development bank

The BRICS group of five nations—Brazil, Russia, India, China and South Africa—held its sixth annual summit this year from July 14 to July 16 in Fortaleza in the northeastern Brazilian state of Ceará and in Brasilia, the Brazilian capital. The main business for the five nations' leaders was formalizing their agreement on a plan to create a development bank to serve as an alternative to lending institutions like the International Monetary Fund (IMF) and the World Bank, which are largely dominated by the US and its allies. Although the project will need approval from the countries' legislatures, the BRICS leaders indicated that the group's lending institution would be called the New Development Bank, would be based in Shanghai and would be headed for the first five years by a representative of India. The bank is to start off in 2016 with $50 billion in capital, $10 billion from each BRICS member. The BRICS nations will maintain control of the bank, but membership will be open to other countries; in contrast to the IMF and the World Bank, the New Development Bank will not impose budgetary conditions on loan recipients.

Latin America: protests target Monsanto, Chevron

Latin American activists joined thousands of environmentalists and farmers around the world in an international protest May 24 against genetically modified (GM) crops and Monsanto, the Missouri-based multinational that dominates the transgenic seed industry. This was the third March Against Monsanto since May 25 last year, and organizers expected the day of action to include protests in some 351 cities in 52 countries.

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