The U.S. Supreme Court ruled last month that a holdout group of Argentine creditors must be paid in full, and star economist Nouriel Roubini of New York University argues that the decision is a mistake.

While 93 percent of Argentina's creditors agreed to a restructuring of the debt they hold, a small group wouldn't go along and sued Argentina in the United States, he writes in an article for Project Syndicate.

"The U.S. court decision is dangerous for two reasons. First, the court ruled for the first time that a country cannot continue to pay those creditors who accepted a big reduction on their claims until the holdouts are paid in full."

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This means future creditors have no incentive to approve an orderly restructuring, Roubini says. Just a single creditor can gum up the works.

"Second, if the holdouts are paid in full, the majority of creditors who accepted a haircut can request to be paid in full too," he writes. "If that happens, the country's debt burden will surge again, become unsustainable and force the government to default again on all creditors."

If Argentina doesn't make bond payments by July 30, it will default. But many experts doubt that will happen.

"Conventional wisdom is that this gets resolved before July 30, Marco Santamaria, a money manager at AllianceBernstein, told Bloomberg. "This may be the opportunity for Argentina to finally put to bed its issues with all external creditors."

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