Last week it became clear that there is at least one person on the planet who is seriously concerned about the possibility of Argentina defaulting, and that this is not Cristina Kirchner, the country's president, or its ministers. The man's name is Thomas Griesa, and he is a U.S. District Judge in Manhattan. Last Tuesday, he issued a court order obliging the Argentine government and its creditors to begin round-the-clock negotiations to resolve the debt. The reason is the approaching date of July 30, the deadline for paying off debts. If an agreement is not reached by this time, a default will occur.

US District Judge Thomas Gries hopes Argentina can solve all its money problems in eight days
Photo: Jane Rosenberg, Reuters

As Vlast already reported, after the 2001 default, Argentina tried to reach an agreement with creditors, promising them to pay a small part of the debt in exchange for waiving claims. Most creditors agreed to restructure the debts at a loss for themselves, but some bondholders turned to the American court, since, in accordance with the terms of the bond issue, all controversial issues were to be considered in the American court. The legal battle lasted for several years and ended only this summer, when the US Supreme Court upheld the decision of a lower court that supported the plaintiffs. Moreover, the same judge Greiza prohibited Argentina from paying interest on restructured debts until an agreement is reached with those who want to receive the debt in full.

The Argentine authorities sent representatives to New York, saying, however, that they did not believe in the success of the negotiations.

American judge wants to save Argentina