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Argentina might be forced to negotiate bond fight

BUENOS AIRES, Argentina — Argentina’s president has objected to the conditions of a US judge’s ruling requiring a $1.33 billion debt repayment, but analysts say she may ultimately have to negotiate with the holdout investors she calls ‘‘vultures’’ to avoid an impending default and a new blow to the country’s reputation.

President Cristina Fernandez at first indicated she wouldn’t go along with the terms of a judge’s ruling that the defaulted bonds be repaid after the US Supreme Court on Monday left the earlier order in place.

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In a national address Monday night, Fernandez defiantly vowed not to submit to ‘‘extortion,’’ from NML Capital and others that have refused two opportunities to swap defaulted bonds for new, less valuable bonds that the government has reliably paid since 2005. But she also said she had been working on ways to keep Argentina’s commitments to other creditors.

Her hard line came hours after the justices in Washington refused to hear Argentina’s appeal, and it could be a last effort to gain leverage ahead of a negotiated solution that both sides say they want. But with only days before a huge debt payment ordered by the court is due, many economic analysts and politicians say the country’s already fragile economy could be deeply harmed if she doesn’t immediately resolve the dispute.

‘‘Another default can be quite costly economically and financially,’’ said Goldman Sachs’ Latin America economist Alberto Ramos.

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