By now, investors had expected that Argentina would have settled its long-running dispute with the hedge funds that had refused the sovereign’s debt restructuring terms following its 2002 default. When, in mid-2014, a US district court upheld a previous ruling siding with the funds, analysts forecast that president Cristina Fernandez’s administration would resolve the matter before the country's October 2015 general elections, and before payment on a dollar bond was due in the same month.
Argentina – according to its own official statements – is running out of foreign reserves and, officially at least, continues to be cut off from international markets. Yet, a settlement has still not materialised. Far from it, in fact. The country is being accused of favouring disingenuous schemes over international negotiation, and its already stagnant economy is at risk of being engulfed by further waves of litigation.
