New year could resolve Argentine debt debacle, or not

The fine print Argentina blames for failed negotiations with disgruntled creditors expires Thursday, theoretically clearing the way for a deal to lift the country out of default — if the two sides want it. The RUFO clause is part of Argentina’s 2005 and 2010 debt restructuring agreements, hard-fought deals the South American country reached with creditors who agreed to take steep losses on their bonds after it defaulted on $100 billion in debt during its 2001 economic crisis. According to Buenos Aires, that meant it had no choice but to defy a US federal court ruling in favor of two American hedge funds demanding full payment on the defaulted Argentine bonds they bought for pennies on the dollar. Blocked by the court from paying its restructured debt until it settles the $1.3 billion dispute with the hedge funds, Argentina defaulted again on July 30.

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