A US
judge has ruled that the Republic of Argentina is in contempt of court for
refusing to obey an order to repay the debt it owes to two US hedge funds.
Argentina
has been mired in a US court dispute with the funds, which bought the country's
debt at a discount after its default in 2001.
In
July, Judge Thomas Griesa ruled that Argentina must repay the funds before it
can repay other bondholders.
Argentina
refused, sending the country into default.
Earlier
on Monday, Argentina's ambassador to the US warned in a letter to US Secretary
of State John Kerry that if the country was found to be in contempt of court,
it would represent "unlawful interference" in Argentina's domestic
affairs.
