Argentina - Public Domain

Argentina threatened to default on its debt on Wednesday when the government called it “impossible” to pay bond service due on June 30, citing a U.S. court decision earlier in the day increased pressure on economically-ailing country.

Buenos Aires is locked in a 12-year legal fight with creditors who refused to participate in two restructurings that followed Argentina’s 2002 default on $100 billion in bonds.

The long impasse in the U.S. courts has kept the country from accessing international capital markets as its economy stagnates, inflation soars and central bank reserves fall.

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