Charles Lane is right that we need an international bankruptcy system ["Argentina's risky business," op-ed, June 19]. In fact, if we had such a system, Argentina never would have defaulted on its bonds in the first place, and holdout lenders would have had to sit at the table. As Mr. Lane also pointed out, we need rules for responsible lending and borrowing to ensure that loans are contracted in a transparent and accountable manner to discourage corrupt borrowers and irresponsible lenders.
Where I differ with Mr. Lane is his assertion that Monday’s Supreme Court victory for so-called vulture funds was anything other than a catastrophe for the world’s poor. The high court denied protections for poor countries against extreme, predatory behavior. Mr. Lane noted that bond agreements involve legal recourse to a venue where the rule of law is respected. But the rule of law is respected not just in the United States but in France, Britain and Germany, all of which have been hostile to this predatory behavior. In the wake of this ruling, countries will seek to sign debt contracts in those countries, not here.
Andrew Hanauer, Washington
The writer is campaigns director for the Jubilee USA Network.
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