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Argentina doubts debt resolution at US hearing

Argentina said it does not expect to resolve the legal battle that forced it into default at a hearing on Friday (August 1) called by US District Judge Thomas Griesa in New York. 

BUENOS AIRES: Argentina said it does not expect to resolve the legal battle that forced it into default at a hearing Friday called by US District Judge Thomas Griesa in New York. "We cannot have favourable expectations because he has always had a biased view" of a dispute between Buenos Aires and two US hedge funds, Argentine cabinet chief Jorge Capitanich told reporters.

In partial default since Wednesday, Argentina can, however, hope to clinch an agreement with two US hedge funds that have refused to accept a write-down on their Argentine bonds and international banks that have proposed to repurchase the US$1.3 billion (S$1.62 billion) debt.

Argentine officials and representatives from Aurelius and NML Capital are expected at the court hearing at 11:00am (1500 GMT).

Capitanich said the hearing would focus on details of the "payment process", referring to the US$539 million (S$673 million) payment Buenos Aires made on June 26 to restructured debt holders. That payment has been in limbo as Griesa halted the disbursement of those funds by a US bank, saying Argentina must first settle its debt with the so-called "vulture funds".

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