Americas: You’re all wrong

Author: | Published: 26 Aug 2014

Argentina's fight with holdout creditors and its eventual default proves that, sometimes, everyone is a loser.

A 2012 US court ruling that ordered Argentina to repay its holdout bondholders if it was going to make payments on its restructured bonds is the catalyst for the situation. What made the ruling more significant was that, unlike previous decisions, Judge Thomas Griesa included an anti-evasion clause to prevent Argentina's clearing bank from making any payments on the restructured bonds until a settlement with the holdouts was reached.

For a time it seemed like this stalling and threat of another default would force Argentina to reach a negotiated...