Argentina must pay 336 million dollars to appeal a ruling in favor of hedge funds
Argentina must pay 336 million dollars to appeal a ruling in favor of hedge funds
Argentina must deposit nearly 336 million dollars to appeal an unfavorable ruling on a lawsuit brought by four hedge funds.
Argentina must deposit nearly 310 million euros (about 336 million dollars) to be able to appeal an unfavorable ruling on a lawsuit brought by four hedge funds, linked to euro-denominated obligations, ruled a London court on Thursday.
The South American republic received permission in January to appeal a 2023 judgment of 1.56 billion euros on the condition that Argentina pay the deposit in court, pending the outcome of the case.
The granting of permission was a boost for Argentina, whose economy is already staggering under a heavy debt burden, inflation exceeding 200%, and a myriad of capital controls to protect the peso.
However, Argentina’s lawyers argued that they should not be required to pay hundreds of millions of dollars to proceed with their appeal.
Judge Stephen Phillips ruled on Thursday that Argentina should pay just under 310 million euros, representing approximately 20% of the total bill, to be able to appeal.
In a written judgment, Phillips stated, “There is a very high risk that Argentina will find the funds to appeal both to this court and, if permitted, to the Supreme Court, but will not pay the judgment if unsuccessful.”
Phillips gave Argentina until April 5th to make the payment.
In Argentina, the presence of multiple exchange rates is primarily a consequence of government policies aimed at controlling currency flows and managing the country’s economic challenges. The official exchange rate, set by the government, is typically lower than the market demand for dollars.
This official rate is subject to government intervention and is often used for specific transactions such as imports, exports, and government operations.
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