Argentina protecting national interests in debt dispute

The Argentine government is "protecting" national interests in its debt dispute with holdout funds, Cabinet Chief Jorge Capitanich said Monday.

In his daily press briefing, Capitanich said the drawn-out dispute with those debt-holders, which have rejected Argentina's debt restructuring plan, was not politically motivated, but for protecting a sovereign nation.
According to Capitanich, "nearly 72 percent of Argentineans support the stand" taken by President Cristina Fernandez in the matter.
The dispute played out in a New York City court, but Argentina has taken the case to The Hague-based International Court of Justice, arguing that U.S. courts have overstepped their jurisdiction and violated the nation's sovereignty by interfering in its negotiations with creditors. Washington has rejected the accusation.
The legal battle arose after the holdouts, which Argentina refers to as "vulture funds," sued the Argentine government to pay them in full.
Their demand was recently endorsed by New York judge Thomas Griesa, who then blocked Argentina from making initial payments to more than 92 percent of its creditors who had agreed to the country's debt restructuring plan. Griesa's argument was upheld by the U.S. Supreme Court.
As a result, even though Argentina's Central Bank deposited some 539 million dollars in the Bank of New York on June 26 for the initial payments, the ruling blocked the release of the funds, leading the country to a technical default.