No. Argentina defaulted on their debts in the 1990's. No one would lend to them. So they decided to issues bonds based on US laws and rules. People bought them up. Then they defaulted again in the 2000's. A few hedge funds held those bonds and refused to settle for an insane write off. They took Argentina to court in New York, where the bonds were originated, and won. They have been trying to collect on their debt since. They were able to confiscate an Argentina Navy ship docked in Ghana. Argentina cried "Not fair! You refused to settle!" Eventually, Argentina had to settle for a much higher amount and the hedge funds made a profit by waiting, having faith in the rule of law*, and not panicking like everyone else.
Argentina has agreed to pay $4.65 billion to four hedge funds in a deal that could put an end to more than a decade of legal attacks that had cut the country off from global financial markets.
These holdouts, so named for their refusal to participate in Argentina’s two restructurings after the country defaulted on $100 billion of debt in 2001, sought billions in bond repayments and eventually succeeded in preventing Argentina from paying any of its creditors.
And they went to great lengths to compel Argentina to pay — at one point persuading authorities in Ghana to seize an Argentine navy ship as collateral, with a crew of about 300 on board. They also moved to impound other government assets, including a satellite.
In order to collect the decade-old debt, Singer’s fund tried to claim money deposited by the country’s central bank in the U.S. and Europe. And it sought to seize two satellite launch contracts between Argentina and SpaceX.
Elliott Capital persuaded a Ghanaian court to seize the vessel so it could collect on its debt. Argentinian officials would lash out at Elliott as “unscrupulous financiers” and after more than two months the ship was released.
The hedge fund fight dates back to 2001 when Argentina defaulted on $80 billion of debt. Most of the country’s creditors, 93 percent, agreed to walk away with just 30 percent of what they were owed. But the remainder, including Elliott, other hedge funds and some small independent creditors, refused the deal.
“The only reason they [Argentina] settled, I think, is because they need access to the markets again and would not have much of a chance without settling. They are among the most frequent defaulters in the markets and have been for years, it seems only a matter of time before they will do it again.”