[ Argentina ]
The letter warns that Griesa’s decision could “torpedo an existing agreement with those bondholders who chose to negotiate.”
It also cautions that, since sovereign governments do not have the option of declaring bankruptcy, “the court’s ruling would severely hamper the ability of creditors and debtors to conclude an orderly restructuring should a sovereign debt crisis occur.
This could have a significant negative impact on the functioning of international financial markets, as the International Monetary Fund has repeatedly warned.“
via Economists Call on Congress to Mitigate Fallout from Ruling on Argentine Debt | Press Releases.