Argentina Debt Default

Floor Speech

Mr. WICKER. Mr. President, I rise today to discuss the debt default of the Republic of Argentina. Since it defaulted on its debt 9 years ago, the nation has ignored the judgments of American courts even though Argentina committed to honor such judgments when the debt was originally issued.

In 2001, Argentina defaulted on over $81 billion in sovereign debt, the largest default in modern history. American creditors were heavily exposed to the losses that resulted from that default and Argentina's debt restructuring. Despite paying off certain creditors in full, Argentina still owes U.S. bondholders over $3 billion while holding nearly $54 billion in reserves.

Bondholders have won over 100 U.S. Federal court judgments against Argentina. Additionally, Argentina has not paid claims brought by U.S. companies and other bondholders in international forums, which have collectively issued over $900 million in judgments against Argentina.

I have been approached on this matter by my constituents in Mississippi who are concerned about the outstanding court judgments. The issue of Argentina's default also reaches beyond my state's borders to every U.S. taxpayer because some of these losses are qualified tax deductions.

In light of my concerns, I am considering introducing legislation next year to address this issue. This is a step I hope I do not have to make, but I believe previous obligations should be honored.

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