US judge orders new talks on Argentina debt dispute

People line up to enter the US Federal Courthouse on August 1, 2014 in New York where they will continue with litigation into the Argentinian debtThe US judge presiding over Argentina’s bitter dispute with two hedge funds left the country stranded in default, ordering it to hold new negotiations and calling for an end to “mistrust.” Despite fighting tooth-and-nail, Buenos Aires has been unable to find a way around District Judge Thomas Griesa’s ruling in favor of the hedge funds, which has blocked it from making payments to other creditors who agreed to take a 70 percent write-down after the country’s 2001 economic crisis. It missed a $539 million payment due Wednesday after 11th-hour talks failed to break the impasse with the two American hedge funds, which refuse to accept a write-down. Griesa, who has blocked Argentina from servicing its restructured debt without also repaying the hedge funds the full $1.3 billion it owes them, ordered the litigants to hold new talks.

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