The clock is ticking. Argentina will default in just a few days unless the country can find a way to satisfy creditors that are owed roughly $1.5 billion.
The country’s only remaining option appears to be negotiations — and a compromise. If a deal is not reached, the country could miss its next bond payment on July 30.
Argentina’s pickle is the result of a marathon legal battle with a small group of “holdout” creditors that have demanded full payment on bonds they picked up after the country’s last default in 2001.
Most of the country’s other bondholders agreed to debt restructurings, but the holdouts have waged a battle in court for full principal — plus interest.
The countdown to default started in earnest last month when a U.S. judge ruled that if Argentina doesn’t pay the holdouts, it can’t make any more payments to its restructured bondholders.
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