Argentine Senate condemns Ghana for detaining warship

BUENOS AIRES - The Argentine Senate on Wednesday issued a declaration condemning Ghana's "illegal detention" of an Argentine naval training ship for overdue debt payments.

The seizure of Libertad in Ghana's Tema Port was a violation of international law, said the declaration.

A Ghanaian court ordered the ship impounded on Oct 2 following a claim by US-based private investment fund NML Capital Limited, which is trying to collect $370 million of debt that went into default during Argentina's devastating economic crisis a decade ago.

Argentina has refused to negotiate with what it calls a "vulture fund" that swooped in at a time of financial crisis to buy cheap bonds and now wants to cash in.

NML, meanwhile, refused to participate in two of Argentina's debt-restructuring opportunities, in 2005 and 2010, in which a majority of the creditors settled for 30 cents on the dollar.

With no solution in sight to the debt dispute, Argentine President Cristina Fernandez ordered the evacuation of the 279 marines aboard the ship last week, leaving behind a skeleton crew of 44 to maintain and operate the vessel.

Fernandez has criticized NML Capital and said recently that the creditors could not be allowed to interfere with the country's sovereignty.

"As long as I am president, they can have the warship, but they cannot have the country's freedom, sovereignty and dignity," said Fernandez.