Subsequently, though Argentina wanted to repay some creditors, the judgment prevented Argentina from doing so, because being forced to repay all creditors, including the holdouts, would have totaled around $100 billion. The country was therefore categorized as being in
selective default by
Standard & Poor's and in restricted default by
Fitch.
[9][10]The ruling affected New York law Argentine bonds; Argentine bonds issued under Buenos Aires and
European law were not affected.
[11][12]
Proposed solutions include seeking
waivers of the RUFO clause from bondholders, or waiting for the RUFO clause to expire at the end of 2014.
[8] The dilemma raised concerns internationally about the ability of a small minority to forestall an otherwise-agreed debt restructuring of an insolvent country,
[8] and the ruling that led to it was widely criticized both within the United States and internationally. Although the media widely reported that the default ended with payments to the principal bondholders in early 2016, during the
presidency of Mauricio Macri, several hundred million dollars in outstanding defaulted bonds remained unpaid, which resulted in continuation of litigation. In November 2016 Argentina announced that it had settled with additional creditors for US$475 million.
[13]
