Accuracy in Media

WASHINGTON — Argentina may have to repay its investors for defaulting on their sovereign bonds back in 2002, if a U.S.-based court case goes the investors’ way.

Reuters reported that the Argentine government criticized U.S. judge for his decision in Argentina’s debt case. Thomas Griesa, the U.S. district court judge, said that Argentina has to stop claiming it met its obligations and was not in default.

Instead, he said he would issue a contempt order, which sent the country’s peso currency to a record low of 12.15 per U.S. dollar.

In response, Argentine President Cristina Fernandez Kirchner’s Cabinet Chief Jorge Capitanich said that Griesa did not get the complexities of the case. He also said that no new talks have been scheduled with the investors.

Reuters explained some of the important dates in the case:

In 2012, Griesa ordered Argentina to pay a group of holdout hedge funds led by Elliott Management Corp and Aurelius Capital Ltd $1.33 billion plus interest and barred it from repaying the holders of exchanged debt without paying the holdouts too.

In June, Argentina deposited $539 million into the account of an intermediary bank to make a June 30 coupon payment. Griesa ruled the deposit illegal and ordered the money frozen.

As a result, Argentina effectively missed the payment. The International Swaps and Derivatives Association (ISDA) will hold an auction on Aug. 21 to settle Argentina’s default swaps, Thomson Reuters’ IFR reported.

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