In July 2000, the Argentine Federal Court sent down a landmark ruling that will have far-reaching repercussions for odious debt campaigners worldwide. The court held that a substantial portion of Argentina’s foreign debt is rooted in fraudulent and illegitimate loans amassed during the country’s military period.
In his decision, Judge Jorge Ballestero held that many loans to Argentina were part of "a damaging economic policy that forced [Argentina] on its knees through various methods . . . and which tended to benefit and support private companies - national and foreign - to the detriment of society and state companies." The ruling puts blame on the shoulders of corrupt civil servants as well as International Financial Institutions such as the IMF.
In his speech to the International Jubilee 2000 Conference in Bamako, Mali, debt activist Alejandro Olmos Gaona argues that the court's decision exposes how international creditors helped ensure that money lent to Argentina was not used in the interest of the state. As such, the ruling is an invaluable resource for campaigners in other countries who are trying to challenge the legality of their own odious debts.
The ruling held open the door for Argentinean lawmakers to conduct a formal investigation of the origins of the illegitimate loans. However, Gaona states that the Argentine Congress has not properly pursued the matter because of pressure from foreign creditors. In response, Gaona calls for the organization of a massive worldwide movement to fight for the repudiation of illicit debts everywhere.
In his speech, Gaona also provides details about a new trial in which the refinancing of the original debts is being examined. As the plaintiff in this new case, Gaona is arguing that all of the new credit the Argentine government has requested from the IMF, World Bank and foreign private banks, has been to refinance debts that have already been declared illicit. With this trial, he hopes to expose how Argentina’s public and private debts were administered by foreign banks and financial institutions to the detriment of the Argentine people.
