'Argentina to fight US court ruling on debt,' Lorenzino says

Argentina will use all legal means to defend its position against a US court ruling that would force the country to repay creditors who sued to collect on defaulted Argentine bonds, Economy Minister Hernan Lorenzino said today.

Late last month, a federal appeals court in New York ruled that Argentina violated bond provisions to treat all creditors equally when it made payments to creditors who accepted the swaps, while refusing to pay the holdouts.

Lorenzino said Argentina would honor debt payments to bond holders who agreed to the restructuring.

"We will use all (legal) avenues to continue defending Argentina's position before the courts," Lorenzino told reporters on the sidelines of the G20 meeting of finance chiefs in Mexico City.

"We will not allow the actions of vulture funds to prevent Argentina from honoring its commitments to bondholders who agreed to the debt restructuring."

Fitch has put Argentina's foreign currency ratings on watch negative, stating the ruling "increased uncertainty about Argentina's ability to service its international securities issued under New York law on a timely basis using the US financial system."