UPDATE 2-Holdout investors tell Argentina: 'Time is running out' for deal

miércoles 16 de julio de 2014 18:00 GYT

(Adds Fernandez quotes)

By Richard Lough

BUENOS AIRES, July 16 (Reuters) - Argentina is running out of time to broker a debt deal and avoid another painful default, "holdout" investors suing the country for full repayment on their bond holdings said on Wednesday.

Latin America's No. 3 economy has just two weeks to cut a deal with the holdouts, but a government source told Reuters on Tuesday there would be no face-to-face talks with a court-appointed mediator this week, raising questions over Argentina's commitment to reaching an agreement.

The holdouts spurned the terms of Argentina's restructurings following a $100 billion default in 2002. The country has until July 30 to reach a deal with the funds or face default.

"Time is running out for Argentina," read a full-page advertisement in Argentina's El Cronista daily, by a U.S. lobby group working for the New York-based hedge funds.

"It is time for Argentina to demand that its leaders behave in a serious and responsible manner to save this country from default."

Addressing leaders of the so-called emerging BRICS economies in Brazil, President Cristina Fernandez said Argentina had, and would continue, to honour its debt obligations to investors who took part in the 2005 and 2010 debt swaps.

But she reiterated that Argentina could not meet a U.S. court order demanding full payment to the holdouts because of a legal clause prohibiting Buenos Aires from offering better terms than those given to investors who accepted large writedowns.   Continuación...