Argentina fights to stave off default

Argentina has begun proceedings to fight against a US court order that risks plunging the country into default,

The court has ordered Argentina to repay bondholders – led by US hedge funds – who in 2005 and 2010 refused to swap defaulted debt for bonds that paid a lower rate.

But bondholders who did accept the swaps have filed for a temporary stay on the court’s ruling, amid fears they may not get paid if the ruling is implemented.

Argentina’s finance minister yesterday called the court’s decision “an attack on sovereignty that shows ignorance of the laws passed by our Congress”.

If nothing changes then Argentina could be pushed into a technical default in the next few weeks.