News / Americas

Argentina, US Creditors Fail to Reach Deal; Default Imminent

Axel Kicillof, Argentina's economy minister, addresses member of the news media after a negotiation session at the Argentinean Consulate in New York, July 30, 2014.
Axel Kicillof, Argentina's economy minister, addresses member of the news media after a negotiation session at the Argentinean Consulate in New York, July 30, 2014.
VOA News

Argentina’s economic minister says the country will default on its debt.

Minister Axel Kicillof said Wednesday the South American country failed to reach agreement with several New York hedge funds before a midnight deadline. He said Argentina “had negotiated in good faith.”

The hedge funds sued, demanding full repayment of their $1.5 billion share of the Argentine debt.

As Argentina’s delegation scrambled in negotiations at a New York office for a last-minute deal, the price of Argentina bonds surged 15 percent to levels not seen in more than three years.

The move higher came as U.S. ratings agency Standard & Poor's downgraded Argentina's credit rating.

This marks the second time in 13 years Argentina has defaulted on its debt.

The country moved money to a New York bank to make the scheduled debt payment, but a federal judge would not allow the country to pay only those bondholders who agreed to its debt restructuring.

Argentina officials said that means they have only partially defaulted.

The downgrade from S&P will require the country to repay some debt early.

You May Like

Video One Year After Thai Coup, No End in Sight for Military Rule

Since carrying out the May 22, 2014 coup, the general has retired from the military but is still firmly in charge More

Job-Seeking Bangladeshis Risk Lives to Find Work

The number of Bangladeshi migrants on smugglers’ boats bound for Southeast Asian countries has soared in the past two years More

Video Scientists Say We Need Softer Robots

Today’s robots are mostly hard, rigid machines, with sharp edges and forceful movements, but researchers at Carnegie Mellon University say they should be softer and therefore safer More

This forum has been closed.
Comment Sorting
Comments
     
by: lone eagle from: Bangkok, Thailand
August 01, 2014 12:16 AM
In the 2012 book "Why Nations Fail" the authors devote about 30 pages to Argentina with this statement that summarizes it all: "Since independence,Argentina has suffered from most of the institutional problems that have plagued Latin America. It has been trapped in a vicious, not virtuous cycle."

According to the Wikipedia subject "Corruption in Argentina"
"Corruption remains a serious problem in the public and private sector even though the legal and institutional framework combating corruption is strong in Argentina...........In 2013, Argentina was ranked 106th out of 177 countries in Transparency International's Corruption Perceptions Index, a ranking it shared with Bolivia, Gabon, Mexico, and Niger. According to the Index, Argentina, along with Mexico, was the most corrupt country in Latin America."
Meanwhile in the United States in Virginia a former governor and his wife are on trial for corruption, and a sitting governor in New York is being castigated by a major American newspaper, the public, and a US Attorney for prematurely shutting down an investigation that he established to investigate corruption in his own government. If Argentina is serious about resolving its financial problems it needs to clean up the country's corruption and reform its political and economic institutions.

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Turkey's Main Opposition Party Hopes for Election Breakthroughi
X
May 22, 2015 10:23 AM
Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Turkey's Main Opposition Party Hopes for Election Breakthrough

Turkey’s main opposition Republican People’s Party has sought an image change ahead of the June 7 general election. The move comes after suffering successive defeats at the hands of the Islamist-rooted AK Party, which has portrayed it as hostile to religion. Dorian Jones reports from the western city of Izmir.
Video

Video Europe Follows US Lead in Tackling ‘Conflict Minerals’

Metals mined from conflict zones in places like the Democratic Republic of Congo are often sold by warlords to buy weapons. This week European lawmakers voted to force manufacturers to prove that their supply chains are not inadvertently fueling conflicts and human rights abuses. Henry Ridgwell reports from London.
Video

Video Class Tackles Questions of Race, Discrimination

Unrest in some U.S. cities is more than just a trending news item at Ladue Middle School in St. Louis, Missouri. As VOA’s Kane Farabaugh reports, it’s a focus of a multicultural studies class engaging students in wide-ranging discussions about racial tensions and police aggression.
Video

Video Mind-Controlled Prosthetics Are Getting Closer

Scientists and engineers are making substantial advances towards the ultimate goal in prosthetics – creation of limbs that can be controlled by the wearer’s mind. Thanks to sophisticated sensors capable of picking up the brain’s signals, an amputee in Iceland is literally bringing us one step closer to that goal. VOA’s George Putic reports.
Video

Video Afghan Economy Sinks As Foreign Troops Depart

As international troops prepare to leave Afghanistan, and many foreign aid groups follow, Afghans are grappling with how the exodus will affect the country's fragile economy. Ayesha Tanzeem reports from the Afghan capital, Kabul.
Video

Video Poverty, Ignorance Force Underage Girls Into Marriage

The recent marriage of a 17-year old Chechen girl to a local police chief who was 30 years older and already had a wife caused an outcry in Russia and beyond. The bride was reportedly forced to marry and her parents were intimidated into giving their consent. The union spotlighted yet again the plight of many underage girls in developing countries. Zlatica Hoke reports poverty, ignorance and fear are behind the practice, especially in Asia and Africa.
Video

Video South Korea Marks Gwangju Uprising Anniversary

South Korea this week marked the 35th anniversary of a protest that turned deadly. The Gwangju Uprising is credited with starting the country’s democratic revolution after it was violently quelled by South Korea’s former military rulers. But as Jason Strother reports, some observers worry that democracy has recently been eroded.
Video

Video California’s Water System Not Created To Handle Current Drought

The drought in California is moving into its fourth year. While the state's governor is mandating a reduction in urban water use, most of the water used in California is for agriculture. But both city dwellers and farmers are feeling the impact of the drought. Some experts say the state’s water system was not created to handle long periods of drought. Elizabeth Lee reports from Ventura County, an agricultural region just northwest of Los Angeles.
Video

Video How to Clone a Mammoth: The Science of De-Extinction

An international team of scientists has sequenced the complete genome of the woolly mammoth. Led by the Swedish Museum of Natural History in Stockholm, the work opens the door to recreate the huge herbivore, which last roamed the Earth 4,000 years ago. VOA’s Rosanne Skirble considers the science of de-extinction and its place on the planet
Video

Video Blind Boy Defines His Life with Music

Cole Moran was born blind. He also has cognitive delays and other birth defects. He has to learn everything by ear. Nevertheless, the 12-year-old has had an insatiable love for music since he was born. VOA’s June Soh introduces us to the young phenomenal harmonica player.

VOA Blogs

More Americas News

Tutu Lends Support to Age Campaign

Help Age International has launched Action 2015 campaign
More

Colombia Kills 18 FARC Rebels

The bombing raid took place in the Cauca region of western Colombia
More

US, Cuba Talks Resume With Focus on Embassies

Fourth round of talks aimed at overcoming obstacles to opening embassies in each other's capitals and re-establishing diplomatic ties
More

Lawmakers Question Normalization Effort With Cuba

On eve of next round of US-Cuba talks, Senator Bob Menendez calls engagement 'one-sided'
More

Chinese Premier Visits South America

Brazil is the first stop on Chinese premier Li’s tour of Latin America
More

2 US Senators Would Require Cuba to Address Claims

Republican Senators Rubio, Vitter say Cuba needs to address up to $8 billion in outstanding claims by US citizens, businesses for properties confiscated by Castros before trade, travel embargoes lifted
More