Last Friday, Argentina lost its appeal from a US court ordering the state to pay USD1.33 billion to hedge funds. Argentina appealed as said hedge funds declined to accept steep discounts during the debt restructuring phase of the nation.

The 2nd US Circuit Court of Appeals in New York ordered the decision and is the latest in the standoff between the Argentine government and the US courts. According to some investors, this could lead the nation to default. The New York court remained its decision until the completion of a pending review by the US Supreme Court. The pending review gave Argentina and some investors a sense of relief.

Argentina and the US courts exchanged harsh words through the entire course of the trial. Argentina said that a ruling against the nation would threaten future sovereign debt restructuring plans. Meanwhile, the court also threw harsh statements by calling the Argentine government led by President Cristina Fernandez hedge fund vultures.