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Can Argentina Survive Cristina? Argentina, Rule of Law, and the Implications of Debt Default September 23rd Event

For the second time in just thirteen years, South America’s third largest economy has defaulted. This time, Argentina’s president has actually chosen to default.

Following Argentina’s historic default in 2001, 93 percent of its bondholders accepted a loss and settled. The remaining bondholders refused and have continued to demand full repayment. These creditors have U.S. law on their side. In 2012, a federal judge in New York ruled in favor of the holdout creditors and the U.S. Supreme Court declined to hear Argentina’s appeal. The law clearly states that Argentina owes the holdouts their money, and furthermore, that Argentina cannot repay the renegotiated bondholders without also paying the holdouts. Despite having the ability to pay, President Kirchner has ignored the U.S. court injunction and devised a work-around to pay only holders of the renegotiated bonds.

President Kirchner’s actions could hold grave consequences for Argentina and the rule of law. What happens when a democratically elected leader of a G-20 nation arguably defies national law, U.S. courts, and international treaties by refusing to pay her country’s bills? On September 23rd, Hudson Institute hosted two expert panels to analyze the implications of this second default and discuss whether Argentina can survive such policy decisions.

Click to view the presentations by Nicolás Ducoté, Sebastian Saiegh, and Juan Carlos Hidalgo.

Ambassador Jaime Daremblum Moderator, Short Term and Long Term Implications of Argentina's Default

Senior Fellow and Director, Center for Latin American Studies, Hudson Institute

Nicolás Ducoté Panelist, Short Term and Long Term Implications of Argentina's Default

Under Secretary for Political Affairs, City of Buenos Aires

Sebastian M. Saiegh Panelist, Short Term and Long Term Implications of Argentina's Default

Associate Professor, University of California, San Diego

Juan Carlos Hidalgo Panelist, Short Term and Long Term Implications of Argentina's Default

Policy Analyst, Latin America, Cato Institute

Charles Blitzer Moderator, When Sovereigns Violate the Rule of Law

Principal, Blitzer Consulting

Ambassador Otto Reich Panelist, When Sovereigns Violate the Rule of Law

Former U.S. Ambassador to Venezuela

Richard A. Samp Panelist, When Sovereigns Violate the Rule of Law

Chief Counsel, Washington Legal Foundation

Dennis Hranitzky Panelist, When Sovereigns Violate the Rule of Law

Partner, Dechert LLP

Hudson Experts

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