Washington has refused to allow the UN International Court of Justice (IJC) to hear Argentina’s claims that US court decisions on the country’s debt have violated Argentina's sovereignty.
“We do not view the ICJ as an appropriate venue for
addressing Argentina’s debt issues, and we continue to urge
Argentina to engage with its creditors to resolve remaining
issues with bondholders,” the US State Department told
Reuters in an email.
The State Department sent an email with the same content to one
of Argentina’s leading newspapers, the Clarin.
Argentina complained against Washington's decisions on its debt
to the International Court of Justice in The Hague on Thursday.
But according to existing norms, Buenos Aires needs Washington to
voluntarily accept the ICJ’s jurisdiction for the proceedings to
begin.
The US withdrew from compulsory jurisdiction back in 1986 after
the UN court ruled that America’s covert war against Nicaragua
was in violation of international law.
Since then, Washington accepts International Court of Justice
jurisdiction only on a case-by-case basis.
On Friday, US District Judge Thomas Griesa, who oversees
Argentina’s legal battle with hedge funds, threatened that a
contempt of court order may be implemented.
Griesa said it will be put forward if Argentina continues to
“falsely” insist that it has made a required debt payment on
restructured sovereign bonds.
The warning caused confusion, as the judge didn’t specify who
will face the punishment – Argentina or its lawyers.
It will be quite difficult to sanction the Argentinean state, as
US federal law largely protects the assets of foreign governments
held in the US, said Michael Ramsey, a professor of international
law at the University of San Diego.
"You can't put Argentina in jail, so I'm not sure what he'd
have in mind besides monetary sanctions," Ramsey said.
Later on Friday, Argentina's economy ministry issued another
statement, accusing the US judge of “clear partiality in
favor of the vulture funds.”
"Judge Griesa continues contradicting himself and the facts
by saying that Argentina did not pay," the statement said.
Previously, Argentina announced the restructuring of 93 percent
of its 2001 debt, but creditors holding the other seven percent
of the bonds demanded full payment and initiated a legal battle.
A New York court ruled that Argentina had to pay $1.33 billion to
the hedge funds, blocking the transfer of $590 million that
Buenos Aires forwarded in order to cover its restructured debt.
The judge said Argentina had to start talks with the lenders that
didn’t approve the debt restructuring and negotiate to postpone
the payment with those who did agree.
With lenders unable to receive payment, international regulators
and rating agencies announced Argentina’s 'selective' default.