Argentina has until July 30 to pay the court-demanded US$1.22 billion plus interest loan from its creditors or risk facing a default.

The country could still negotiate the payment terms, but Argentina and its creditors have yet to meet face-to-face to talk about the settlement.

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The court appointed David Pollack as a mediator who will handle the negotiation between the two parties.

In 2012, U.S. District Judge Thomas Griesa passed a ruling demanding Argentina to fix the holdouts filed by Aurelius Capital Management and MNL Capital Ltd, an affiliate of Elliot Management Corp.

The country's bondholders have agreed to restructure the debts, but the holdouts won the court in asking for full payment of the principal loan plus interest.

President Cristina Fernández de Kirchner is deliberating the country's other options to avoid default, according to reports.

The holdouts said they are willing to compromise.

Argentina is worried that the reprimanded deal, if they could reach one before July 30, would cost the country billions of dollars in additional interest.

Nonetheless, the government claimed they did not have enough time to find a "fair resolution."

Fernández also said she will not accept a deal from the holdouts that would potentially threaten the country's future.

It will be the second default in Argentina's history if the government fails to pay its credits by the end of July.

The first default happened in 2002, after the country missed a payment that costs about US$100 billion.

As a result, the country caused a setback in Latin America's efforts to connect with the global financial system.

If Argentina could not reach a resolution, it could lose the majority of it foreign investments that could eventually devalue their currency, analysts said.

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