President Cristina Fernandez administration has high hopes that the US Supreme Court will take its long running litigation case with holdout hedge funds that refused to accept sovereign debt rescheduling after Argentine defaulted in 2001.
The economic team's expectations is that the Supreme Court of the United States take the case, said deputy Economy minister Emmanuel Alvarez in an interview with a Buenos Aires broadcasting station.
The Argentine government is fighting a decisive battle in the US courts, due to the fact that a favorable ruling would mark a new victory on the road to ending the default status decreed during Adolfo Rodríguez Saá's short presidency in December 2001.
Last May 25, Argentina made their final presentation to the US Supreme Court, in which it was requested that rulings from lower courts in favor of the 'holdout hedge funds be reviewed'.
The most positive outcome for Argentina would occur if the tribunal accepts the case and considers that a US lower courts wrongly interpreted the concept of pari passu, which ensures that the country must treat all creditors equally.
Previous rulings have ordered Argentina to pay up front around 1.33bn dollars to hedge funds which bought the junk bonds in 2008 and did not enter the 2010 debt swap.
If Argentina is forced to pay, those creditors who did enter the swap could start an avalanche of legal proceedings, which could put Argentina in danger of another default.
Alvarez also commented on the deal made by Economy minister Axel Kicillof with the Paris Club to pay debt obligations, a move that could possibly reopen international credit lines for Argentina.
We do not believe that external debt is bad per se. It is good when taken to finance infrastructure projects that allow the country to grow and it is bad when used for gambling, Álvarez explained.
Argentina pays up as long as the payment conditions are sustainable for the country, he asserted, adding that the vulture funds' business is all about gambling.