Argentina is on the brink of a second default in 13- years if it fails to reach a deal with two US hedge funds.
A US court has ordered Argentina to payback $1.3bn to NML and Aurelius Capital Management by the June 30.
That is 100 percent of their investment in Argentinian debt when the country went bankrupt in 2001.
Argentina agreed with 93 percent of its bondholders on a debt restructuring in 2005 and 2010.
However the others, including the two US hedge funds, refused to accept a restructuring and want to be repaid now.
On Thursday Argentina said it had paid money to those which had agreed on a restructuring, but not to those who had opted out.
The judge returned the money and said Argentina must pay all its creditors.
If the country fails to pay all bondholders the judge has ruled that it can no longer use the US financial system to repay money.
Buenos Aries is reluctant to hand over the cash as it believes others will demand the same presenting the country with a $15 billion bill.
Argentina’s central bank has $28.5bn in reserve as the country enters recession.