Tuesday, 23 August 2016
Last updated 12 min ago
May 28 2014 | 11:24am ET
Less than a month before the U.S. Supreme Court meets to consider whether to take its case, Argentina reiterated that it will ignore any American court rulings that order it to pay hedge-fund holdouts from its 2001 default.
In a statement yesterday, Argentina said it would continue to make payments to creditors who accepted huge losses in debt exchanges in 2005 and 2010. The country’s president, Cristina Kirchner, has vowed never to pay the holdouts, led by Elliott Management, which have won several court rulings against the country.
Should the Supreme Court refuse to hear the case or eventually rule against Argentina, it could force the country to default on its restructured debt. The lower courts have ruled it cannot continue to pay that debt without also paying the holdouts.
But Argentina, which is set to make a filing with the Supreme Court shortly, said yesterday that it “reaffirms its commitment to servicing its restructured debt,” and that its position in the court fight “cannot be interpreted as an unwillingness to comply.”
Argentina is currently in talks with the Paris Club of 19 creditor nations about restructuring the $9 billion it has owed them since the default.