U.S. Court Ruling Creates Dilemma For Argentine Government

The Argentine government found itself in New York District Court on June 27. At stake is whether U.S. courts can force Argentina to default on debt payments owed to the various bondholders who accepted 2005 and 2010 reductions on their Argentine sovereign debt holdings. The ruling could lead to economic hardship in Argentina, creating opportunities for international actors to lend their support, therefore extending their influence in the region.