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| Version 2 | Version 3 |
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| Argentina dealt double blow over bondholder fight | Argentina dealt double blow over bondholder fight |
| (about 7 hours later) | |
| The US Supreme Court has delivered a double blow to Argentina over its long-running battle with holders of the country's defaulted bonds. | The US Supreme Court has delivered a double blow to Argentina over its long-running battle with holders of the country's defaulted bonds. |
| First, the court on Monday rejected Argentina's appeal against an order to pay more than $1.3bn to hedge funds that hold some of the bonds. | First, the court on Monday rejected Argentina's appeal against an order to pay more than $1.3bn to hedge funds that hold some of the bonds. |
| Then, bondholders won the right to use US courts to force Argentina to reveal where it owns assets around the world. | Then, bondholders won the right to use US courts to force Argentina to reveal where it owns assets around the world. |
| The country's main stock market tumbled more than 6% at the start of trading. | The country's main stock market tumbled more than 6% at the start of trading. |
| The court's decision means that bondholders should find it easier to collect on their debts. | The court's decision means that bondholders should find it easier to collect on their debts. |
| But President Cristina Fernandez de Kirchner went on national television to say her country couldn't afford to honour the ruling. | |
| She said her government was willing to discuss the issue further, but added: "What I cannot do as president is submit the country to such extortion." | |
| However, Anna Gelpern, an expert in sovereign finance at the US-based Georgetown Law School. said: "This realistically is the end of the road for Argentina's decade-long fight." | |
| The South American country defaulted in 2001 following its economic crisis, and has been in a legal battle with bondholders led by hedge funds NML and Aurelius Capital Management. | The South American country defaulted in 2001 following its economic crisis, and has been in a legal battle with bondholders led by hedge funds NML and Aurelius Capital Management. |
| 'Slap' | 'Slap' |
| Argentina argues the funds bought most of the debt at a deep discount after the default, and has since tried to impede the country's efforts to restructure. | Argentina argues the funds bought most of the debt at a deep discount after the default, and has since tried to impede the country's efforts to restructure. |
| Investors holding more than 92% of the defaulted debt agreed in 2005 and 2010 to write off two-thirds of their pre-crisis value, providing Argentina with time to re-build its economy. | Investors holding more than 92% of the defaulted debt agreed in 2005 and 2010 to write off two-thirds of their pre-crisis value, providing Argentina with time to re-build its economy. |
| But the hedge funds held out against the restructuring. | But the hedge funds held out against the restructuring. |
| Sebastian Centurion, economist at ABC Exchange, told the Reuters news agency: "It's a slap in the face. The truth is that this is surprising because it is giving a precedent for any 'vulture fund' to go against any country, so any country is vulnerable in a restructure, so this is bad news for other countries." | Sebastian Centurion, economist at ABC Exchange, told the Reuters news agency: "It's a slap in the face. The truth is that this is surprising because it is giving a precedent for any 'vulture fund' to go against any country, so any country is vulnerable in a restructure, so this is bad news for other countries." |
| Argentina has said that forcing it to pay the money demanded by the bondholders could threaten its economy. | Argentina has said that forcing it to pay the money demanded by the bondholders could threaten its economy. |
| Siobhan Morden, head of Latin American strategy at Jeffries, said she hoped there will be a willingness on both sides to negotiate a compromise. | Siobhan Morden, head of Latin American strategy at Jeffries, said she hoped there will be a willingness on both sides to negotiate a compromise. |
| In 2012, one of Argentina's navy ships was impounded in Ghana after bondholders won a court order as part of the dispute. After several weeks, the ship returned home. | In 2012, one of Argentina's navy ships was impounded in Ghana after bondholders won a court order as part of the dispute. After several weeks, the ship returned home. |