Tuesday, April 10, 2012

UK Government demands repayment of £45million loans to Argentina for Falkland invasion

Britain is demanding that Argentina repays £45 million in loans that were used to pay for the invasion of the Falkland Islands.

The Department of Business is taking a tough line with the government in Buenos Aires as tensions flare around the 30th anniversary of the war.

The money was loaned to the Argentine junta in 1979 and was used to buy military equipment which was used to seize the South Atlantic outposts three years later.

UK Export Finance, an arm of Vince Cable's business department, inherited the debt after Argentina defaulted on loans to British exporters, which had been underwritten by the British government.

The money helped to buy two Type 42 destroyers, which were used during the invasion and two Lynx helicopters, one of which was among the first to arrive on the islands after the assault was launched.

Details of the existing debt have been uncovered from the National Archives by pressure group the Jubilee Debt Campaign. Read More