Argentina Defies the Vultures

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The July 30, 2014 deadline for Argentina and its hold-out “vulture” creditors to come to an agreement and comply with the order of U.S. Federal Judge Thomas Griesa came and went.  In the lead up to the deadline Argentina remained defiant.  Argentine Cabinet Chief Jorge Capitanich stayed on message and insisted that the vulture funds were acting “in bad faith.”  He noted that, in contrast, the Argentine government honors its commitments in good faith.  “There cannot be a default when the debtor is paying,” Capitanich repeated in many variations during his daily press briefings.  Argentine President Cristina Fernández de Kirchner took Argentina’s case to the BRICS and to Mercosur when she received varying degrees of solidarity from other Latin American leaders.  Argentina continues to insist that this is not default, and what is more, it’s not their fault.  Argentine leaders are fully aware of the political implications of the struggle; even as the North American counter parts seem to remain clueless.  Argentina also seems to be winning the battle for hearts and minds around the world, with even members of the business press condemning the “immoral” game the vultures are playing; and international bodies are worrying about future attempts by other, poorer countries to restructure their debt.