Supreme Court’s inaction signals bad news for heavily indebted poor countries

CNS Blog

A man walks next to his makeshift home in 2008 in Buenos Aires, Argentina. The U.S. Supreme Court denied an appeal by Argentina in a case in which a hedge fund has sued the country for $1 billion, meaning the country will be forced to turn over information about financial assets in New York banks and face the possibility of not providing development aid for the country's poorest residents. (CNS/Cezaro De Luca, EPA) A man walks next to his makeshift home in 2008 in Buenos Aires, Argentina.  (CNS/Cezaro De Luca, EPA)

The U.S. Supreme Court’s decision yesterday not to hear an appeal from Argentina after being sued by a hedge fund for $1 billion has upset advocates for debt relief.

The inaction by the Supreme Court lets two lower federal court rulings stand and Argentina now must turn over information about its U.S. bank holdings to the hedge fund.

Catholic News Service recently reported on the case and the work of Jubilee USA to advocate for debt relief for poor countries.

Eric LeCompte, executive director of Jubilee USA, told CNS this morning that the case means it is open season on the assets of other heavily indebted poor countries.

“It has incredible impacts in terms of how the financial system operates, how poor countries have the ability to become middle income…

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