Argentina must stop telling “half truths” about default, says US judge
A US judge has urged Argentina and its creditors to resume negotiations after the Latin American nation defaulted for the second time in 12 years.
Judge Thomas Griesa told investors holding Argentine bonds and lawyers acting for the government: "Nothing that has happened this week has removed the necessity of working out a settlement," at a hearing in New York for the first time since Argentina defied an order to pay.
Furthermore, Griesa told the New York hearing that Argentina must stop telling "half truths" about its default. Bond-holders, which Argentina has labelled "vulture funds," are demanding a full payout of $1.3bn (£766m).
The bonds were bought by hedge funds NML and Aurelius Capital Management for a fraction of their face value in the aftermath of Argentina's economic collapse in 2001.
On Wednesday, Argentina refused to pay and officially defaulted on Friday after the International Swaps and Derivatives Association ruled that its failure to pay $539m to its creditors earlier this week constituted a "credit event".
Argentina had hoped its case would go to the US Supreme Court, which would have given the country more time to pay its debts. However, in June, the Supreme Court refused to hear Argentina's appeal against the decision of a lower court.
Cristina Kirchner accused government judge Griesa of being biased in favour of the hedge funds. "To say we are in default is a huge stupidity," said Economy Minister Axel Kicillof on Thursday.
"Judge Griesa took the side of the vulture funds throughout the negotiations. As I mentioned before, the negotiating table was tilted towards them," he added.