The International Monetary Fund says it will not file a brief backing Argentina in its legal battle with investors who refused to take losses on debts after the $100 billion default in 2001.
Managing Director Christine Lagarde had been expected to recommend the IMF executive board file a brief with the U.S. Supreme Court. That brief would have supported Argentina's petition to reverse lower court rulings seeking to force Argentina to pay more than $1.4 billion owed to investment funds trying to collect on bonds rendered nearly worthless in the default.
The IMF is concerned the case will set a precedent that could make it harder for other countries to obtain debt relief. The IMF says Lagarde reversed her decision after the U.S. said it would not support the filing.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.