The Supreme Court of the United States rejected Argentina's appeal in the case of the holdouts and the embargo of the collateral of the Brady Bonds due to the 2001 default. This decision empowers creditors to seize the country for a total amount of 310 million dollars in various accounts of the Federal Reserve of New York, Germany, and Switzerland.
The funds in question, linked to the Brady bonds issued in the 90s and maturing in 2023, will be claimed by creditors. The ruling allows for the seizure of Argentine sovereign assets in an account at the Central Bank in the U.S. Federal Reserve. This adds to a series of international legal complications for Argentina, such as the 'PBI Coupon' case in 2024 that forced it to pay more than 1.3 billion euros to bondholders.
Creditors are now preparing a request for an embargo before Judge Loretta Preska to enforce the measure at the New York Federal Reserve locations. In total, Argentina faces lawsuits for a total of 450 million dollars due to previous defaults. They seek to seize the Brady bonds valued at 250 million dollars in New York, in addition to 58 million euros in Basel.
This is the second recent defeat for Argentina in front of international supreme courts. Experts indicate that Argentina is facing this new legal setback, trying to meet judicial demands and avoid further financial complications in the future.
