Argentina slams U.S. ruling on repayment to foreign creditors

PanARMENIAN.Net - Argentina will appeal against a U.S. ruling ordering it to pay $1.3bn to foreign creditors holding bonds that it defaulted on in 2001, according to BBC News.

The government has until December 15 to reimburse the hedge funds, which shunned two exchanges of defaulted debt in 2005 and 2010.

But Economy Minister Hernan Lorenzino rejected the decision, saying it was illegitimate to pay "vulture funds".

Argentina defaulted on $100bn of bonds in 2001, a record amount at the time. But by 2003 a recovery was under way, and the International Monetary Fund (IMF) agreed to a new loan.

Since then, Argentina has restructured its massive debt twice, offering creditors new bonds for the defaulted ones.

Lorenzino said the government was prepared to take its appeal to the U.S. Supreme Court. "We'll fight all decisions that are against the interests of our country," he said.

President Cristina Fernandez de Kirchner said her government would not pay a single dollar.

While her administration has reimbursed the money borrowed from the IMF, Mrs Fernandez considers the bond debt illegitimate.

Some analysts say the hedge funds' legal victory has raised fears Argentina could be plunged into yet another debt default.