Argentina’s government on Wednesday ruled out further piecemeal debt talks with a small group of U.S. hedge funds and said the country needed to strike a deal with all bondholders which have rejected past restructuring agreements as a single group.
Latin America’s No. 3 economy fell into default again last month after failing to reach an agreement with a group of holdout funds led by NML Capital Ltd and Aurelius Capital Management, which are suing for full payment on their bonds.
Other funds which have also rejected bond swaps that followed the South American country’s record default in 2002 lurk on the sidelines and could launch similar lawsuits.
“We have to negotiate with everyone,” Economy Minister Axel Kicillof told a group of congressional committees on Wednesday.
A deal is now not seen likely before next year’s October presidential election, in which Fernandez cannot run.