Friday, August 1, 2014

Congo and Grenada to Be Next Victims as Argentina Braces for Default

The International Monetary Fund earlier noted that the court's ruling could make it more difficult for countries to restructure their debts by making it more attractive for creditors to hold out. The US government also filed a brief on behalf of Argentina before the US Circuit Court of Appeals, arguing that a ruling in favor of the holdout creditors would harm core US debt policy. The government noted that the ruling against Argentina would harm New York's position as a global financial center, as countries in future would seek to sign debt contracts elsewhere to avoid similar situations. In June, the US Supreme Court refused to hear an appeal on the case. The court ruling could also impact related cases in New York concerning Grenada and the Democratic Republic of Congo.

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