We study a classical model of fully-packed loops on the square lattice, which interact through attractive loop segment interactions between opposite sides of plaquettes. This study is motivated by effective models of interacting quantum matter arising in frustrated magnets or Rydberg atom arrays, for which loop degrees of freedom appear at low energy. Through a combination of Monte Carlo simulations and an effective height field theory, we find that the critical point known to occur at infinite temperature gives rise to a high-temperature critical phase with floating exponents. At lower temperature, the system transitions via a Kosterlitz-Thouless phase transition to a nematic phase where lattice rotation symmetry is broken. We discuss consequences for the phase diagram of the quantum loop model on the same lattice.

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