FILE - In this Dec. 9, 2012, file photo, Argentina's President Cristina Fernandez delivers a speech during a rally marking the 29th anniversary of the return to democracy in Argentina, on the eve of the Human Rights day, in Buenos Aires, Argentina. It's been a decade since Argentina tarnished its reputation worldwide and became an economic misfit by engaging in the biggest sovereign debt default in history, yet it is still haunted by the old bonds. Although Argentina's government restructured nearly all of the debt defaulted in the 2001 economic crisis, Fernandez finds herself in a bitter U.S. court fight with holdout creditors that has raised the threat of severe financial repercussions. (AP Photo/Victor R. Caivano, file)
Argentina's fight on defaulted debt takes new step
FILE - In this Dec. 9, 2012, file photo, Argentina's President Cristina Fernandez delivers a speech during a rally marking the 29th anniversary of the return to democracy in Argentina, on the eve of the Human Rights day, in Buenos Aires, Argentina. It's been a decade since Argentina tarnished its reputation worldwide and became an economic misfit by engaging in the biggest sovereign debt default in history, yet it is still haunted by the old bonds. Although Argentina's government restructured nearly all of the debt defaulted in the 2001 economic crisis, Fernandez finds herself in a bitter U.S. court fight with holdout creditors that has raised the threat of severe financial repercussions. (AP Photo/Victor R. Caivano, file)
By ALMUDENA CALATRAVA
Associated Press /
December 28, 2012
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The amount at stake in the current litigation is $1.3 billion, but all of the old bonds held by investors who didn’t accept the debt restructuring total about $11.2 billion. If the U.S. courts eventually uphold Griesa’s ruling, all those investors could demand immediate payment.
Ramiro Castineira, an analyst for the consulting firm Econometrica, sees a possibility that the courts may rule in favor of the ‘‘vulture funds’’ but also allow a more favorable schedule of payments for Argentina.
‘‘There’s a lot of uncertainty,’’ Castineira said. ‘‘Whatever the court rules, both sides are going to appeal and try to take it to the Supreme Court, which must decide if it takes the case or not.’’
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Associated Press writers Michael Warren in Buenos Aires and Luis Andres Henao in Santiago, Chile, contributed to this report.
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