Argentina defends payment plan; analysts trash it

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Associated Press

Posted on April 1, 2013 at 5:33 PM

Updated Monday, Apr 1 at 8:04 PM

BUENOS AIRES, Argentina (AP) — Argentina says its plan for paying $1.4 billion in defaulted debt is fully within the spirit of U.S. court rulings.

But Wall Street analysts say the offer, a mix of new bonds to be paid out over the next 25 years, looks nothing like the letter of the law as the appellate court sees it. They say it boils down to just one-sixth of what Argentina was told to hand over in cash.

Many experts looking over the weekend at what President Cristina Fernandez's government filed with the court at midnight Friday said a new default by Argentina is now much more likely.

And some are predicting that if Argentina loses, it will try to take its money out of U.S. banks, rather than submit to U.S. justice.

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