Americas

Americas

Argentina can appeal $1.7 bln bill in securities case

31 January 2024 19:51 (UTC +04:00)

Argentina has been given permission to appeal after losing a London lawsuit brought by four hedge funds over euro-denominated securities which left the country facing a 1.56 billion-euro ($1.69 billion) bill, Argentina's lawyers said on Wednesday, APA reports citing Reuters.

The Court of Appeal granted permission to appeal earlier this month, but only on condition that Argentina pays around 310 million euros in escrow pending the outcome of the case.

The court decision is a boost for the South American republic, whose economy is already buckling under high debt loads, inflation running at over 200% and a myriad capital controls to protect the peso.

However, Argentina's lawyer Tamara Oppenheimer said requiring the country to put aside money would cause "irremediable harm" to the Argentinian population.

She asked the Court of Appeal on Wednesday to remove the condition that it pay the money to be able to pursue the appeal.

Oppenheimer said Argentina, because of its dependency on the International Monetary Fund, cannot pay the 310 million euros without diverting money that is already committed elsewhere.

The dispute comes after Argentina last year lost a lawsuit brought by the four hedge funds over securities linked to the country's gross domestic product in 2013.

Lawyers for the funds, which hold around 48% of the GDP-linked securities, said on Wednesday that allowing Argentina to appeal without paying any money would give it a "one-way bet".

And Judge Stephen Phillips, who granted permission to appeal, raised concerns about Argentina's reliance on the harm that would be caused if it had to pay 310 million euros.

He asked: "Why would the government pay (the final bill) if it is going to cause irremediable harm to its population?"

The judge said he would give a ruling on whether Argentina had to pay to pursue its appeal at a later date.