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Sat Dec 29, 2012, 04:08 AM

US backs Argentina in debt restructring case

US backs Argentina in debt restructring case
AFP 5 hours ago.

The US gave strong support to Argentina on Friday in the Latin American country's legal battle with hedge funds over the repayment of $1.3 billion to holders of defaulted bonds.

Shortly before a court-imposed deadline, the US filed a "friend of the court" brief backing Argentina's attempt to overturn a ruling ordering it to make good on the bonds held by US hedge funds.

A hearing for Argentina's appeal has been set for February 27, 2013, again putting off a reckoning over Argentina's debt, which fell into arrears 11 years ago.

In a 15-page document, the administration of President Barack Obama warned the court that the November ruling "adopts a novel interpretation of a standard pari passu (fairness) clause" that "runs counter to longstanding US efforts to promote orderly restructuring of sovereign debt."

The US also warned the ruling could create risks for the dominance of the dollar in the bond market.


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