IMF may back Argentina in case over 2001 default

IMF chief wants to back Argentina against investors trying to recoup losses from 2001 default

Associated Press

WASHINGTON (AP) -- The International Monetary Fund chief will ask the executive board to back Argentina in its legal battle with investors who refused to take losses on debts after the $100 billion default in 2001.

A U.S. appellate court is weighing how to force Argentina to pay more than $1.4 billion owed to investment funds trying to collect on bonds rendered nearly worthless.

A source with knowledge of the matter said Thursday the board will be asked next week to file a brief with the Supreme Court supporting Argentina's petition to reverse lower court rulings. He spoke on condition of anonymity because he was not authorized to talk on the record before the board's decision.

The IMF is concerned about precedents that could make it harder for countries to obtain debt relief.

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