The justices effectively upheld an
That opened the way for NML and others to seek immediate payment on 100 percent of the face value of the bonds they hold, even though most of the country's creditors took a huge writedown of their bonds to help the government rebuild its finances.
Monday's ruling "is really the end of the road" for
"Really, there are only two options left to
Those prospects, and the strain that making higher debt payments could place on the Argentine economy, sent stocks and the peso tumbling in
The Merval index sank 10.1 percent, while the peso lost 1.7 percent against the dollar in the black market exchange.
Kirchner also lashed out at efforts at what she called "extortion" in the wake of the court ruling.
"The market is only reacting to the possibility of whether the government will comply with the decision, and not over whether it has the capacity to pay. Because they know it does," he told AFP.
But she said that the ruling empowers all other holdouts to seek payment, which could bring the total cost of the battle to nearly
And that is in addition to what the country has to pay the majority of its creditors, the "exchange bondholders", who joined the 2005 and 2010 restructuring deal.
"This would take time, and
The ruling also has ramifications for global sovereign debt markets, especially restructurings of defaulted debt that require creditors to agree and have traditionally punished holdouts who do not accept writedowns.
Experts said it would likely make crafting restructurings more difficult, since there would possibly be less incentive to accept writedowns.
JubileeUSA, which speaks for a number of anti-poverty organizations, said it was dismayed that the court had rewarded speculators while harming the interests of the majority of bondholders.
"This totally undermines how the financial system restructures debts."
The court dismissed two challenges by
The second was on whether
On the first issue, the court made no comment, while on the second, the court ruled that the US Foreign Sovereign Immunities Act does not protect the country from "discovery" of its assets.
A third challenge, by the exchange bondholders, was also turned back by the court with no comment.
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