Latin America's No. 3 economy tipped into its
second default in 12 years in July after U.S. District Judge
Thomas Griesa blocked payments to holders of debt issued under
U.S. law that was restructured following its record default in
Griesa said measures announced by Argentina's president this
week to make debt payments locally and push bondholders to bring
their debt under Argentine law violated past court rulings,
though he stopped short of holding the country in contempt.
Argentine Cabinet Chief Jorge Capitanich said U.S. District
Judge Thomas Griesa's choice of words were "unfortunate,
incorrect and even, I would say, imperialist expressions".
In a statement issued late on Thursday, Argentina's economy
ministry said the veteran judge's remarks showed a "complete
ignorance of the functioning of democratic institutions."
Analysts say that a deal between Argentina and the U.S.
investment funds who rejected large writedowns in the wake of
the 2002 default is now unlikely before next year's election, in
which President Cristina Fernandez cannot run.
The country's peso currency has shed 5.2 percent since the
tough-talking Fernandez unveiled the draft bill late on Tuesday,
its fastest fall since January, plumbing a new record low of 14
per dollar on the black market <ARSB=> on Thursday.
(This story corrects percentage of currency fall in 7th
(Reporting by Jorge Otaola and Richard Lough)
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