At least two banks in Belgium froze Argentine bank accounts at the request of U.S. hedge fund NML Capital, according to a person with knowledge of the matter.
A Belgian court ordered the freeze on behalf of the investors who are seeking to enforce U.S. judgments against Argentina over its 2001 default on $95 billion of debt, according to the person who asked not to be identified because the order hasn’t been made public.
There is no evidence at this time that the bank accounts belong to the Argentine embassy in Brussels, as reported earlier by newspaper La Nacion, the person said.
NML, a unit of billionaire Paul Singer’s Elliott Management, refused restructuring offers from Argentina that imposed losses of 70 percent, which had been accepted by holders of about 92 percent of the repudiated debt. NML sued for full repayment and won $1.7 billion in judgments, which Argentina refuses to pay.
In June, the U.S. Supreme Court left intact court orders that blocked the South American nation from paying interest to holders of restructured debt until NML and other creditors are paid.

Creditor Efforts

“In the absence of a negotiated settlement, our recourse includes locating and attaching Argentine assets wherever we can find them,” NML said in a statement. “Argentina should not be surprised that its refusal to negotiate results in efforts by creditors to pursue their rights in court.”
Argentina’s Finance Ministry said in an e-mailed statement that hedge funds are trying to seize assets in Belgium and that Argentina’s government has not been notified by Belgium’s Foreign Ministry or justice system about 52,000 euros ($58,000) frozen by judicial officials. The ministry also said Argentina is taking steps to stop litigants from “abusive conduct.”
A U.S. appeals court ruled in December that Argentina, and entities tied to it, must give NML and other creditors details of the country’s global assets, including diplomatic and military holdings.
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The decision implies that entities which aren’t alter egos of Argentina and aren’t liable for its debts may still have to reveal their assets to creditors. The subpoenas seek asset information from hundreds of state-related entities with accounts or operations outside Argentina.