BUENOS AIRES Aug 24 Argentina will continue
paying bondholders on the same terms, its economy minister told
state news agency Telam on Saturday, after losing an appeal in
its legal battle with creditors who rejected past restructurings
of the country's defaulted debt.
The 2nd U.S. Circuit Court of Appeals upheld a judge's order
on Friday requiring Argentina pay $1.33 billion to hedge funds
still fighting the country over its record sovereign debt
default more than a decade ago.
"We're going to keep paying as we have until now, on the
same terms," Economy Minister Hernan Lorenzino told Telam,
calling the court ruling "an attempt to bring the country back
The appeals court held off enacting its decision while the
U.S. Supreme Court weighs whether to take up the case, bringing
short-term relief to investors concerned about another default.
The 93 percent of bondholders who renegotiated debts after
Argentina's $100 billion default, accepting less than 30 cents
on the dollar, worry the refusal to pay holdouts in the face of
court orders could freeze payment on restructured bonds as well.
Dissident bondholders led by Aurelius Capital Management and
NML Capital Ltd, a unit of Paul Singer's Elliott Management
Corp, are demanding payment in full. They have argued that
Argentina can't deny them their due while paying investors who
agreed to restructurings in 2005 and 2010.