Argentina on Wednesday lost an appeal in a London court to reverse a ruling which left the South American nation facing a 1.56-billion-euro ($1.67 billion) bill over GDP-linked securities.
Four hedge funds, holding around 48% of the securities issued between 2005 and 2010, sued Argentina in 2019 and London's High Court ruled in their favour last year – leaving Argentina on the hook for 1.33 billion euros plus interest.
The country brought an appeal last month, as its economy faces galloping annual inflation of nearly 300%, the highest in the world.
Its appeal turns on the terms of the securities, which were issued in the wake of Argentina's unprecedented economic crisis culminating in the world's biggest-ever sovereign debt default.
Last year, a judge found Argentina had sought to use a different measure for GDP growth which was not permitted under the securities.
Argentina's lawyers asked the Court of Appeal to rule its interpretation was correct, also saying that requiring it to pay out under the securities would risk "the republic's ability to service both its 'GDP-linked' and conventional debt".
However, the Court of Appeal in London rejected Argentina's appeal, with Judge Andrew Popplewell saying in a written ruling that the wording of the securities was clear.