Argentinian President Cristina Fernández is winning a political victory by refusing to cooperate with a New York court’s ruling -- even if its hurting her country’s economy, Terry legal studies professor Tim Samples told the Financial Times in an article this week.
As Fernández defies a court order requiring Argentina to pay a group of holdout creditors after its 2001 debt default, her citizens are suffering from a sluggish economy.
“It’s pretty remarkable that we can say that Cristina has won given how many losses in court Argentina has suffered,” said Samples, an expert investor-state relations in Latin America. The problem, he said, is the extent of the collateral damage. “What has justice really come up with? The biggest losers are the wrong parties, the innocent ones who have been doing their jobs or acting in good faith — the ones who are responsible actors in the financial system.” These include the bondholders and financial intermediaries that participated in Argentina’s debt restructurings.