US supreme court hears arguments in Argentina's discovery case

The US supreme court on Monday began hearing arguments as to whether Argentina can be forced to reveal its assets to hedge funds and other holdout creditors that are owed money by the South American nation, emanating from its debt default in 2002.

The creditors led by NML Capital, a unit of Elliott Management, have for several years been chasing Argentina in an attempt to confiscate assets in payment for unpaid debts.

Argentina argued that US district court judge Thomas Griesa's discovery order to determine the existence of any Argentine assets in US banks is against the US Foreign Sovereign Immunity Act.

Economy minister Axel Kicillof has claimed international support in the case, including from the IMF. In March, the US government supported Argentina's position in the 12-year case through amicus briefs.

The case to determine what assets can be claimed by holdout creditors is a separate case in which the holdouts are trying to enforce payment, for which Argentina recently filed a certiorari petition to the US supreme court.

With Argentina's reserves dwindling, ascertaining whether the country can afford to pay off the holdouts and determining which assets are those of the state and which relate to commercial property are key.