News Column

Letter: Argentinian debt

June 6, 2014

Tim Jones

The debt deal reached between Argentina and the Paris Club group of western countries is not a "good deal" for the South American country (Argentina debt deal could help ease re-entry to international markets, 30 May), but it is fantastic for the UK and others. Argentina defaulted in 2001 when it ran out of money. Most private lenders accepted 33 cents for every dollar owed. That Paris Club countries are now to be repaid double the original debt represents a huge return, six times more than private lenders received. Western countries are breaking their own rules that lenders should be treated equally when debts need to be reduced.

Moreover, Vince Cable admits that 40% of what Argentina owes the UK is from loans to the military junta in the 1970s to buy British military equipment. The Liberal Democrats have a policy to cancel unjust debts from loans to dictatorships, another promise abandoned in government.

Tim Jones

Jubilee Debt Campaign

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Source: Guardian (UK)

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