An NYC appeals court has ruled against Argentina...and for sovereign bond holdouts... over $1.33 billion owed to holders of long disputed debt.
It ordered President Cristina Fernandez's government to pay on the 2005 defaulted debt...that was issued in the 1990's...even if the suing bondholders bought it at rock bottom prices.
Some bondholders refused to accept only $.25 for each $1.00 of debt...a so-called 'haircut.'
The court says Argentina can afford to pay the debt with more than $40 billion in reserves.
A USA economist calls the ruling ' a watershed legal event.'
Argentina can appeal to the same court...and also the USA Supreme Court.