United Nations Human Rights Council Takes a Jab at U.S. Hedge Funds

By Ena Cefo

U.S. investors, headed by hedge funds NML and Aurelius Capital Management, are suing Argentina in U.S. courts for full payment on their Argentine government bonds totaling US$1.3 billion. The investors bought Argentine bonds for low prices after Argentina’s 2001 default, when the bonds were at a dramatic low. Argentina defaulted on its debt after the investors rejected a widely accepted bond restructuring agreement. The UN Human Rights Council’s resolution condemned the activities of the so called “vulture funds” and warned against the effect of payments to such “vulture funds” on the deterioration of human rights conditions in South American countries such as Argentina.