Argentina has been pushed to the brink of a fresh debt default by U.S. court decisions. The judicial rulings have forced it to negotiate with holdout investors who declined to restructure their bonds after the country defaulted on about $100 billion in 2001-2002. The country has until July 30 to settle the case or face a second default.
Argentina has argued that if the judge did not stay his ruling ordering payment, a settlement is not possible. The country has said that if it pays holdouts, it opens the door to additional liability that could cost it billions. But Griesa said a stay was not necessary and that a deal was realistic.
"In my view, every single problem you've described is susceptible to be handled in a settlement," he said. "If we don't, there will be a default, and that is the worst thing. That is about the worst thing I can envision. I don't want that to happen. People will be hurt by that, real hurt. Not vultures being hurt, but real people."