Argentine Stock Market Getting Pummeled – Business Insider

REUTERS/Michael Dalder

The Supreme Court will not hear Argentina’s case against hedge fund creditors, and Argentina’s stock market is getting killed on the news.

The Supreme Court’s decision is a major blow to Argentina, as it will now be forced to default on its debts or negotiate with creditors, which include Paul Singer’s Elliott Management.

It all stems from the country’s default early last decade. Argentina restructured its debt, but some hedge funds like Elliott Management refused to take part in the restructuring and demanded full payment. The two sides have been battling in court for years about whether Argentina has to pay the holdout hedge funds the full amount. A lower court had ruled that Argentina is on the hook, and the Supreme Court declined to hear the case (and therefore can’t reverse it).

The Merval Argentina Index is down more than 7%, and the Buenos Aires Stock Exchange Merval Index is down nearly 6%.

Argentina’s government has previously called the creditors “vultures.”

BI’s Linette Lopez notes that this ruling was unexpected.

Here’s the ugly action in the Merval index this morning:

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Argentine Stock Market Getting Pummeled – Business Insider

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