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Argentina's Debt Appeal Dies at U.S. Supreme Court

The Supreme Court won’t hear the nation’s appeal in a debt case
Posters against the “vulture funds” on a wall in Buenos Aires on June 18
Posters against the “vulture funds” on a wall in Buenos Aires on June 18Photograph by Alejandro Pagni/AFP via Getty Images

You don’t have to be an Argentina fan to worry about the precedent set on June 16, when the U.S. Supreme Court refused to hear the nation’s appeal in a case brought by hedge funds that hold Argentine government debt. The high court let stand a lower court ruling that blew a hole in the country’s attempt to shrink its debt burden following a 2001 default on $95 billion in bonds. Although the U.S. courts’ actions apply only to this case, they send a message about the empowerment of creditors that could make it harder for other countries to stretch out or cut debt payments in hard times.

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