NY judge: Argentina plan violates bond debt order

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Associated Press

Posted on June 18, 2014 at 2:35 PM

Updated Wednesday, Jun 18 at 4:02 PM

NEW YORK (AP) — A New York judge says Argentina's debt-swap plan to dodge repayment of its defaulted bonds to U.S. hedge funds would violate his court orders.

Judge Thomas Griesa said Wednesday he'll sign an order saying so. He declined to grant the hedge funds a more sweeping order.

Argentina is required to pay the funds $1.5 billion for defaulted bonds by the end of this month.

Wednesday's hearing comes two days after the U.S. Supreme Court refused to intervene in the order.

Economy Minister Axel Kicillof (AHK'-sehl KIHS'-ee-lahf) said Tuesday that the government is "starting to take steps to begin a debt swap" to service the country's restructured debt in "Argentina and under Argentine law."

The dispute stems from Argentina's record $100 billion default on its national debt in 2001.

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