INSTANT VIEW-Argentina loses appeal in bond fight, but stay in place
BUENOS AIRES, Aug 23 (Reuters) - Argentina on Friday lost its appeal of a U.S. judge's order requiring that it pay $1.33 billion to bondholders who refused to participate in two debt restructurings after the country's $100 billion default more than a decade ago.
Still, the Second U.S. Circuit Court of Appeals put enforcement of injunctions against Argentina on hold pending resolution of the country's appeal to the U.S. Supreme Court, delaying the specter of a possible default.
The following are analysts' comments:
JORGE TODESCA, FORMER DEPUTY ECONOMY MINISTER OF ARGENTINA, HEAD OF ECONOMIC CONSULTANCY FINSOPORT, BUENOS AIRES
"Nobody expected a positive decision for Argentina, but this (is) seen as positive since it buys time. The speculation is that the Supreme Court won't take the case."
KEVIN DALY, FUND MANAGER, ABERDEEN ASSET MANAGEMENT, LONDON
"The good news is that the stay is still in. If the stay had been removed you would have seen a sharp decline in prices.
"No one knows how long it will take for the Supreme Court to get to this. We are in August and people expected the court ruling after the February hearing, so these things take time.
"Surveys suggest global investors are pretty underweight but locals are buying it."
STUART CULVERHOUSE, HEAD OF RESEARCH, EXOTIX, LONDON
"The court's decision against Argentina is what we have been expecting. Market disappointment may be tempered ... by the continuation of the stay with the Supreme Court appeal. Still, negative for Argentina bonds, consistent with our view."
(Reporting by Sujata Rao and Guido Nemjakis; Editing by Nick Zieminski)