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

Isolation, Despair Weigh on Refugees in Remote German Camp

Refugees resettled near village of Holzdorf deep in German forestland say there is limited interaction with public, mutual feelings of distrust

Britons Divided Over Bombing IS

Surveys show Europeans generally support more military action against Islamic State militants, but sizable opposition exists in Britain

Russia Blacklists Soros Foundations as 'Undesirable'

Russian officials add Soros groups to a list of foreign and international organizations banned from giving grants to Russian partners

This forum has been closed.
Comment Sorting
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.
With HIV, Can We Get to Zero?i
Carol Pearson
November 29, 2015 1:23 PM
The theme of this year's World AIDS Day is "Getting to Zero." The U.N. says new HIV infections have been reduced by 35 percent since 2000 and AIDS-related deaths are down by 42 percent since the peak in 2004. VOA's Carol Pearson takes a look at what it might take to actually have an AIDS-free generation.

Video With HIV, Can We Get to Zero?

The theme of this year's World AIDS Day is "Getting to Zero." The U.N. says new HIV infections have been reduced by 35 percent since 2000 and AIDS-related deaths are down by 42 percent since the peak in 2004. VOA's Carol Pearson takes a look at what it might take to actually have an AIDS-free generation.

Video Political Motives Seen Behind Cancelled Cambodian Water Festival

For the fourth time in the five years since more than 350 people were killed in a stampede at Cambodia’s annual water festival, authorities canceled the event this year. Officials blamed environmental reasons as the cause, but many see it as fallout from rising political tensions with a fresh wave of ruling party intimidation against the opposition. David Boyle reports from Phnom Penh.

Video African Circus Gives At-Risk Youth a 2nd Chance

Ethiopia hosted the first African Circus Arts Festival this past weekend with performers from seven different African countries. Most of the performers are youngsters coming form challenging backgrounds who say the circus gave them a second chance.

Video US Lawmakers Brace for End-of-Year Battles

U.S. lawmakers are returning to Washington for Congress’ final working weeks of the year. And, as VOA's Michael Bowman reports, a full slate of legislative business awaits them, from keeping the federal government open to resolving a battle with the White House over the admittance of Syrian refugees.

Video Taiwan Looks for Role in South China Sea Dispute

The Taiwanese government is one of several that claims territory in the hotly contested South China Sea, but Taipei has long been sidelined in the dispute, overshadowed by China. Now, as the Philippines challenges Beijing’s claims in an international court at The Hague, Taipei is looking to publicly assert its claims. VOA’s Bill Ide has more from Beijing.

Video After Terrorist Attacks, Support for Refugees Fades

The terrorists who killed and injured almost 500 people around Paris this month are mostly French or Belgian nationals. But at least two apparently took advantage of Europe’s migrant crisis to sneak into the region. The discovery has hardened views about legitimate refugees, including those fleeing the same extremist violence that hit the French capital. Lisa Bryant has this report for VOA from the Paris suburb of Cergy-Pontoise

Video Syrian Refugees in US Express Concern for Those Left Behind

Syrian immigrants in the United States are concerned about the negative tide of public opinion and the politicians who want to block a U.S. plan to accept 10,000 Syrian refugees. Zlatica Hoke reports many Americans are fighting to dispel suspicions linking refugees to terrorists.

Video Thais Send Security Concerns Down the River

As Thailand takes in the annual Loy Krathong festival, many ponder the country’s future and security. Steve Sandford reports from Chiang Mai.

Video Islamic State Unfazed by Losses in Iraq, Syria

Progress in the U.S.-led effort to beat Islamic State on its home turf in Iraq and Syria has led some to speculate the terror group may be growing desperate. But counterterror officials say that is not the case, and warn the recent spate of terror attacks is merely part of the group’s evolution. VOA National Security correspondent Jeff Seldin has more.

Video Belgium-Germany Border Remains Porous, Even As Manhunt For Paris Attacker Continues

One of the suspected gunmen in the Nov. 13 Paris attacks, Salah Abdeslam, evaded law enforcement, made his way to Belgium, and is now believed to have fled to Germany. VOA correspondent Ayesha Tanzeem makes the journey across the border from Belgium into Germany to see how porous the borders really are.

Video US, Cambodian Navies Pair Up in Gulf of Thailand

The U.S. Navy has deployed one of its newest and most advanced ships to Cambodia to conduct joint training drills in the Gulf of Thailand. Riding hull-to-hull with Cambodian ships, the seamen of the USS Fort Worth are executing joint-training drills that will help build relations in Southeast Asia. David Boyle reports for VOA from Preah Sihanouk province.

Video Uncertain Future for Syrian Refugee Resettlement in Illinois

For the trickle of Syrian refugees finding new homes in the Midwest city of Chicago, the call to end resettlement in many U.S. states is adding another dimension to their long journey fleeing war. Organizations working to help them integrate say the backlash since the Paris attacks is both harming and helping their efforts to provide refugees sanctuary. VOA's Kane Farabaugh reports.

VOA Blogs

More Americas News

Brazil Sues BHP, Vale for $5 Billion in Damages for Mine Disaster

The damburst unleashed 60 million cubic meters of mud and mine waste that demolished a nearby village, killing at least 13 people

Brazil House Speaker Denies Bribery Reports

O Globo says investigators seize document implicating Cunha in corruption probe suggesting he received nearly $12M to support legislation favoring top investment bank

Venezuela Arrests 3 in Death of Opposition Candidate

Last week's shooting of Luis Diaz drew international condemnation in run-up to this weekend's election for new legislature

US Activist Heading Home After Serving Peru Sentence

Lori Berenson returning to New York, two decades after being found guilty of aiding leftist rebels in Peru

Pope Outlines Mexico Trip With 4 Stops, Including Juarez

Comments from pope speaking to reporters en route home from Africa on Monday confirms trip will have a strong immigration theme

16 Dead in Guatemala Prison Riot

Prison spokesman quoted as saying fighting was between members of Mara 18 and Mara Salvatrucha gangs and fellow inmates who don't belong to gangs