Argentina Hope For World Cup Win and Debt Settlement

Posted in: Other Areas of the Law

World Cup finalists Argentina will play Germany on Sunday, with superstar Lionel Messi and his teammates hoping to prevail against the team that showed no mercy in its last game.

In another high-stakes clash, Argentinian officials met with a mediator Friday in New York to attempt to settle a looming debt crisis.

Argentina defaulted on $100 billion in debt in 2001, throwing the country into economic chaos. Argentina again risks defaulting on its debt obligations.  The current crisis involves $1.5 billion owed to investors who bought bonds during the 2001 default.  The due date of July 1 has come and gone, and the 30-day grace period will soon expire.

Leading the group of investors is billionaire Paul Singer, who has previously sued Peru and the Republic of the Congo to pay bond obligations.  The investors sought and received a US Supreme Court ruling that Argentina must make the payment.

President Cristina Fernandez has said that the country cannot make the payment and keep up with interest payments to other creditors.  Argentinians also worry that payment of this obligation would set a dangerous precedent and invite lawsuits from other investors demanding to be paid on the same terms.