The United States on Thursday urged Argentina to negotiate a solution with holdout investors after a string of U.S. court decisions that have pushed the country to the brink of default.
Argentina has until the end of July to settle with creditors who refused to accept the terms of past bond restructurings.
If it fails, the country risks tumbling into its second sovereign debt default in 12 years as it grapples with recession, one of the world's highest inflation rates and dwindling foreign reserves.
Roberta Jacobson, U.S. assistant secretary of state for western hemisphere affairs, said it was in Argentina's interest to normalize relations with all creditors and in the interests of the country and the international community that Argentina fully participate in the international financial system.
"Both sides of this dispute have said at different times they would be willing to negotiate, which we believe offers the parties the best path to a resolution," she said at a meeting of the Organization of American States (OAS).
"We are hopeful that Argentina will find a solution to this matter that resolves its issues with the bondholders and allows it to return to inclusive growth."
Argentina's failure to pay about $100 billion of debt in 2001-2002 devastated the economy, crashed the currency, thrust millions of middle-class Argentines into poverty and has shut Latin America's No. 3 economy out of global markets.
Argentine Foreign Minister Hector Timerman said the country was ready to negotiate with the holdouts, led by hedge funds that specialize in buying deeply discounted or distressed debt and negotiating profitable settlements, but on fair terms.