The U.S. Supreme Court has declined to hear Argentina’s appeal that it shouldn’t have to pay a group of hedge funds billions the group says it is owed.
Argentina now risks defaulting.
The appeal was Argentina’s last official means of avoiding paying back investors who’d purchased Argentine debt more than a decade ago, but who had refused to participate in a haircut settlement agreed to by other investors who’d subscribed to the bond issue.
The country had warned it risked default if it was forced to pay the amount in full. The country is also grappling with an unrelated $US24 billion payment due at the end of the month.
“This is the most negative scenario,” BNP Paribas said. @Pawelmorski Tweeted the country’s discount bonds immediately dropped eight points.
Argentina may now seek to settle with the hedge fund group, something it had sought to avoid.
The court order was issued without comment.