Argentina
will have to come up with 10 million dollars or more as a bond to liberate the
flagship of its navy, “Libertad” retained in the Ghanaian port of Tema, following
on the request from a US hedge fund.
Earlier
this week the Superior Court of Judicature granted NML Capital Limited, a
commercial creditor of Argentina, an injunction and interim preservation order
against the sailing ship ARA Libertad, which arrived Monday at Tema port,
reports the Accra press.
The
order requires the Libertad to remain at Tema pending hearings on the
enforcement in Ghana of judgments against Argentina issued by the United States
District Court for the Southern District of New York, supported by similar
judgments in London.
“Argentina
may obtain release of the ship, however, by posting a bond with the High Court
in Accra”, point out the local press mentioning the possible 10plus million
dollars bond.
According
to the request from NML Capital Ltd., “Argentina’s status as an international
scofflaw has been well documented. International creditors have won more than
100 court judgments against the Argentina government, but Argentina has refused
to honour any of these judgments and has repudiated bonds which it issued in
good faith”.
A New
York judge has characterized Argentina’s refusal to pay its debts as an
“absolute steadfast refusal to honour its lawful debts,” and that the
government is “defying deliberately, intentionally, and continually.”
Argentina’s
treatment of creditors and debts also extends to international financial
institutions and has “repeatedly ignored judgments issued by the World Bank’s
arbitral body, the International Centre for the Settlement of Investment
Disputes (ICSID). In May 2012, the Spanish oil company Repsol filed the 50th
ICSID case against Argentina”.
Among
G-20 countries, “Argentina accounts for 84% of pending cases at ICSID. It has
consistently disregarded the rule of law”.
The
Accra press also underlines that in stark contrast, while Ghana has attained an
exemplary ranking among nations of Africa on the Centre for Financial
Stability’s Rule of Law Index, “Argentina ranks near the bottom, because of its
ongoing defiance of international covenants”.
“Although
a sovereign government is involved, such enforcement in Ghana of judgments from
courts in the United States and England is commercial and routine”.
Libertad
is a “tall ship” used for training Argentina’s future navy officers and Tema is
one of more than a dozen ports where she is scheduled to call for training and
supplies in its six-month circumnavigation of the Atlantic.
NML is a
subsidiary of Elliott Management, a New York based investment fund engaged in
the management of investments on behalf of pension funds, university endowments
and other institutions and individuals.
Paul
Singer who is founder and CEO of Elliott Capital Management fund bought
Argentine debt at reduced prices during the country's economic crisis a decade
ago, and now values those unpaid debts at more than 1.6 billion dollars.
From
Buenos Aires Argentine diplomats have said publicly that they are working with
Ghana to clear up the problem.
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