3 Oct 2014
On Monday, US judge Thomas Griesa, said Argentina was in contempt of court for bypassing his ruling that the country should pay all its debtors under conditions stipulated by him. Argentina says it will pay its debtors under its own conditions.
The US court ruling previously blocked Argentina from making $539m in interest payments to the majority of bondholders until a deal with hedge fund creditors was reached. The hedge funds reject the restructuring accepted by 93 percent of bondholders and are demanding a full payout of $1.5bn on bonds they hold. Kirchner has long refused to negotiate with the hedge funds, calling them "vultures".
Argentina has taken its case to the United Nations and beyond, saying it should not be held to ransom by wealthy hedge funds backed by foreign courts. Argentina is now gambling that with the action now a long way from the jurisdiction of the US courts, this is a dispute it can win.
© Al Jazeera