US justice rules against Argentina and the country faces a ban due to the YPF ruling

Judge Loretta Presca rejected the Argentine state's latest request to extend the deadline to repay a $16.1 billion (about 14.46 billion euros) debt it owes to the Burford Capital Fund after losing the ruling to nationalize the oil company YPF in 2012. For this reason, Burford has the right to request a garnishment. Argentine assets will be blocked starting Thursday. Claimants will be able to begin claims in the United States and the rest of the world. The judge's decision constitutes a strong blow to Argentina, which is appealing the ruling issued last September by District Judge Loretta Presca, which is the largest ruling in the history issued by the Manhattan federal court. The South American country, which has economic problems such as high inflation, says the penalty is equivalent to nearly a fifth of its 2023 budget, and paying it would cause it serious hardship. The ruling came after Argentina waived the January 10 deadline to pledge its assets. Recently, the President of Argentina, Javier Miley, confirmed the creation of a “Kiciloff rate” to start repaying debts, given the lack of a budget to confront this court ruling. This rate would allow this debt to be paid with a perpetual bond, obligating Argentina to pay a certain amount of dollars every year. For Milley, this is the only way to confront the “terrible mistake” made by Axel Kicilloff, while he was Argentina's Minister of Economy and Public Finance on the orders of President Cristina Fernandez de Kirchner.