Argentina: G-20 leaders stress need for sovereign restructuring action

By Caroline Salls

Pittsburgh, Nov. 16 – The Republic of Argentina said the final declaration of the 10th summit of heads of State of the G-20 countries stressed the need to implement collective actions related to the risks posed by so-called “vulture funds” on the sovereign debt restructuring process, according to a news release.

In addition, Argentina said the document issued by the G-20 recognized the existing initiatives aimed at improving the practice of sustainable financing as highlighted in an Addis Ababa action agenda, in which it was noted that the restructuring of sovereign debt must be timely, systematic, efficient, fair and negotiated in good faith.

The republic said the statement ensures that these measures “will contribute to the order and predictability of sovereign debt restructuring” threatened by the funds.

Argentina said countries have been encouraged to adopt legislative measures to prevent the threat of vulture funds and to include the reformed collective action clauses.

In addition, Argentina said the leaders of the G-20 made a commitment to raise the gross domestic product 2% by 2018 while cautioning that world economic growth may not live up to expectations.

The G-20 leaders also expressed their concern for the poor performance of world trade, according to the release.

The leaders also said it is key to work in areas that will ensure sustainable development, including energy, quality infrastructure and food security. They also agreed on the importance of moving forward in improving the transparency of tax systems to avoid operation of “tax havens.”

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