Judge finds Argentina in contempt in bond payment case
For more than a year, Judge Thomas P. Griesa of Federal District Court in Manhattan has warned that Argentina would suffer repercussions if it defied his orders regarding payments to bondholders.
On Monday, the judge put some teeth behind those warnings, ruling the nation in contempt of court. He stopped short of issuing sanctions, however, saying he would make a decision on them in the future.
Speaking firmly, Judge Griesa indicated that the Republic of Argentina had gone a step too far in seeking to sidestep his injunction that forbids the government from paying only the bondholders it chooses.
In a separate move that could increase the tension, the Argentine government sent a letter to Secretary of State John F. Kerry on Monday morning before the hearing, seeking to enlist his support and calling the actions by Judge Griesa “excessive judicial harassment,” according to the embassy in Washington.
After hearing both sides speak twice, Judge Griesa promptly issued his ruling. Observers will watch closely to see whether he imposes sanctions. His court has limited ability to enforce a sovereign nation to pay.
Source: NYT- Judge finds Argentina in contempt in bond payment case
