Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

32. To ask the Minister for Foreign Affairs and Trade if his attention has been drawn to the increasing concerns of vulture fund practices, in countries such as Argentina; the efforts his Department has made to bring attention to the issue; and if he will make a statement on the matter. [19326/15]

Charles Flanagan (Laois-Offaly, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am aware of the challenges faced by a number of countries with regard to the restructuring of their sovereign debt. In the case of Argentina, where a minority of creditors have withheld their agreement to a proposed restructuring, a particularly bitter dispute has developed involving adjudication by a United States Court. We greatly regret that it has not proved possible to resolve this dispute thus far.

Ireland attaches considerable importance to the resolution of sovereign debt issues and, in common with our EU Partners, supports the recent and ongoing analytical work by the IMF on sovereign debt restructuring. We recognise the importance of an appropriate international agreement, built upon a market-based voluntary contractual approach regarding sovereign debt restructuring, taking account also of the significant economic, social and financial issues, including those relating to activities by so-called “vulture funds”, which this entails.

We support efforts to resolve global debt issues through dialogue, in the most appropriate fora and using the most appropriate and effective mechanisms, to best support those countries most seriously affected.

I addressed the issue of debt restructuring processes in my reply to a Question on 6 May. As I indicated then, Ireland is actively engaged in ongoing global processes to address the issue of sovereign debt restructuring. Work being undertaken at a number of levels, including in the IMF and at the Third International Conference on Financing for Development to be held in Addis Ababa in July this year, offers the means for meaningful dialogue on the matter.

In partnership with our EU colleagues, we are working for the success of the Addis conference, which is central to the ongoing negotiations on a new framework for global development to follow on from the Millennium Development Goals. These major international negotiations at the UN are being co-chaired by Ireland’s Permanent Representative to the UN, with Kenya.