Time to resolve Argentina’s long battle with creditors is running out.
Argentina owes an interest payment to the majority of its creditors on Monday, though the government has a 30-day grace period after that to avoid going into another catastrophic default.
Last week, the U.S. Supreme Court ruled against Argentina, letting stand a lower court ruling that it must pay off hedge funds that own bonds left over from the country’s default in 2001. President Cristina Fernandez has said Argentina couldn’t afford to pay them while also making regular interest payments to other lenders.
On Friday a federal judge pleaded with Argentina to continue negotiating with the hedge funds. At the same time, the judge called Argentina’s attempt to make its regular interest payment illegal.
One misstep and Argentina could slide into another default, thirteen years after a record $100 billion default devastated its economy.