I think France saw a great opportunity to step up helping Argentina some weeks ago when it seemed that both the United States Executive Branch and the French-led IMF would file "Argentina´s best friend" briefs with the U.S. Supreme Court. Wanting to play a role in international finance matters, France would also be present in the "lawsuit of the century" in debt restructurings. Leadership issues involved. And also the "carrot" to Argentina because of the debt with the Paris Club. Besides, it would also show that France understands debt crises and therefore it would have more authority in the probably upcoming European debt restructurings. A three-fold great strategy for France. International leader along with the U.S. and the IMF, helping Argentina (to have Argentina in Paris) and become an authority in Europe.
Without the U.S. and the IMF, the French friend brief is left alone, for the moment. Therefore its firepower is reduced, but unless it is in the game, and may use it with Argentina at the Paris Club and in Europe for the debt restructurings of some of its members. Of course, it would be better if the U.S. Supreme Court pays attention to its brief. Without the U.S. and the IMF I would be pessimistic for now. However, we still have the next round of cert petitions regarding the upcoming ruling from the Second Circuit on the payment formula and the injunctions on the Bank of New York and other financial institutions. Which is another opportunity for France to step as is it for the U.S. Executive Branch and the IMF. The Supreme Court would then pay more attention.
Eugenio A Bruno
eab@garridolawfirm.com
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