The International Monetary Fund backed off initial plan to seek out the U.S. Supreme Court to look over Argentina case involving a 10-year-old legal battle with creditors. According to IMF, the move was decided after no backing and support was garnered from the U.S. government concerning the longstanding legal battle.
Washington-based lender International Monetary Fund is an organization comprised of 188 countries which cooperate to secure financial stability, promote high employment and reduce poverty around the world. It shared earlier that a ruling against Argentina could have a negative impact on other countries aiming to restructure their debt and solve financial crisis.
Christine Lagarde, IMF Managing Director, had initially planned to recommend that the IMF's board conduct a friend-of-court brief to show support for Argentina but decided not to pursue it.
Earlier this week, the board had evaluated and discussed Lagarde's recommendation but the United States representative removed his support for the Fund's filing.
"The Managing Director's recommendation was premised on U.S. support, as it would not be appropriate for the IMF to file this brief without that support," one of the IMF spokesmen stated. "The Fund remains deeply concerned about the broad systemic implications that the lower court decision could have for the debt restructuring process in general."
Join the Conversation