For more than a year, Judge Thomas P. Griesa of Federal District Court in Manhattan has warned that Argentina would suffer repercussions if it defied his orders regarding payments to bondholders.
On Monday, the judge put some teeth behind those warnings when he ruled that the nation was in contempt of the court. He stopped short of issuing sanctions, saying he would make a decision about them in the future.
Speaking firmly, Judge Griesa indicated that the Republic of Argentina had gone a step too far in seeking to sidestep his injunction that prevented the government from paying only the bondholders it chooses.
