Supreme Court Sides With Holdout Creditors in Argentina Debt Case

The U.S. Supreme Court handed Argentina a major setback in its long-running battle with a small group of determined creditors, heightening the risk the country will default for the second time in 13 years, The Wall Street Journal reported. The justices on Monday rejected Argentina's appeal of a lower-court ruling that said the country can't make bond payments until it compensates hedge funds that refused to accept restructured debt in the years following Argentina's 2001 default. Because of that earlier ruling, Argentina must decide by the end of the month whether to reach a deal with the holdouts or default on its next debt payment. Argentina's President Cristina Kirchner has refused to negotiate with the holdouts, calling them "vultures." But in an address Monday night, she said Argentina wouldn't default on its restructured debt and would make its interest payment at the end of June. "Argentina has shown more than an evident willingness to negotiate [its debts]. But one has to distinguish between a negotiation and extortion," Mrs. Kirchner said in a speech broadcast on national television.