The country has been engaged in a lengthy legal battle with a group of investors who refused to accept a reduced payment following
Instead of accepting a payout of below 30 per cent on the dollar in that restructuring, the bondholders insisted on the full payment.
The law suit ended last week with a US court upholding a 2012 ruling that the bonds should be paid in full.
But the Argentinian government has tried to continue paying the interest and not the full capital - something deemed illegal by the courts.
However, the bonds were issued under US law in a bid to reassure global investors they would be repaid - something which has not happened.
The country now has a 30-day grace period to negotiate the payment.
If that does not happen
Markets reacted sharply when the decision was announced by the court - spreads on credit default swaps, an insurance against failure to repay bonds, jumped by nearly 1,000 basis points, and the interest rate on
But analysts think the impacts have already been factored in by markets.
"So far at least, financial markets in
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