News / Economy

Argentina Defaults Again on Debt

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.
x
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 has defaulted on its debt for the second time in 13 years.

Argentina negotiators failed late Wednesday to reach an agreement with New York investment companies to avert the default. The hedge funds are demanding full payment of $1.5 billion on discounted Argentine bonds they bought the last time the South American nation defaulted in 2001.

More than 90 percent of the creditors holding the 2001 Argentine debt agreed in 2005 and 2010 to write off 70 percent of the money they were owed. But several holdout investors refused, leading to the new financial crisis.

Argentine President Cristina Kirchner is calling the holdout investment creditors "vultures." One of the investment firms, headed by New York billionaire Paul Singer, blamed Argentina for the default, contending that the country refused to "seriously consider" solutions offered by a mediator.

After the negotiations failed, Argentine Economy Minister Axel Kicillof said his country would not bow to the pressure to settle the dispute.

"The president [Cristina Kirchner] said it, this state, this government, is not going to sign anything, nor consent to anything, despite the pressure being exerted, but is going to respect the parameters of the law, and respect the interests of the Argentine people, so, we offered what was within the possibilities available to us, which was, either join the exchange or grant a stay," he said.

It was not immediately clear how the default would affect the Argentine economy, already in a recession and with one of the world's highest inflation rates.
 
The U.S. credit ratings agency Standard & Poor's downgraded Argentina's long- and short-term foreign currency credit rating to so-called "selective default" Wednesday. Selective default acknowledges that Argentina is current on payments to some creditors and is probably able to make some payments on the debt it has defaulted on.

The agency said it could remove the default label once the country makes payment on the bonds.

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 only pay those bondholders who agreed to write off money they once were owed.

Argentine officials contend that means they have only partially defaulted.

 

 

You May Like

Turkey: No Ransom Paid for Release of Hostages Held by IS Militants

President Erdogan hails release of hostages as diplomatic success but declines to be drawn on whether their release freed Ankara's hand to take more active stance against insurgents More

Audio Sierra Leone Ends Ebola Lockdown

Health ministry says it has reached 75 percent of its target of visiting 1.5 million homes to locate infected, educate population about virus More

US Pivot to Asia Demands Delicate Balancing Act

As tumult in Middle East distracts Obama administration, efforts to shift American focus eastward appear threatened More

This forum has been closed.
Comment Sorting
Comments
     
by: Raymond Ghiutz Murdock
August 01, 2014 11:56 AM
All very strange when the comments are slow to exit, or not listed ... one wonders censorship or a truth that goes beyond reality??

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Natural Gas Export Plan Divides Maryland Towni
X
Deborah Block
September 21, 2014 2:12 PM
A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Natural Gas Export Plan Divides Maryland Town

A U.S. power company that has been importing natural gas now wants to export it. If approved, its plant in Lusby, Maryland, would likely be the first terminal on the United States East Coast to export liquefied natural gas from American pipelines. While some residents welcome the move because it will create jobs, others oppose it, saying the expansion could be a safety and environmental hazard. VOA’s Deborah Block examines the controversy.
Video

Video Difficult Tactical Battle Ahead Against IS Militants in Syria

The U.S. president has ordered the military to intensify its fight against the Islamic State, including in Syria. But how does the military conduct air strikes in a country that is not a U.S. ally? VOA correspondent Carla Babb reports from the Pentagon.
Video

Video Iran, World Powers Seek Progress in Nuclear Talks

Iran and the five permanent members of the U.N. Security Council plus Germany, known as the P5 + 1, have started a new round of talks on Iran's nuclear program. VOA State Department correspondent Pam Dockins reports that as the negotiations take place in New York, a U.S. envoy is questioning Iran's commitment to peaceful nuclear activity.
Video

Video Alibaba Shares Soar in First Day of Trading

China's biggest online retailer hit the market Friday -- with its share price soaring on the New York Stock Exchange. The shares were priced at $68, but trading stalled at the opening, as sellers held onto their shares, waiting for buyers to bid up the price. More on the world's biggest initial public offering from VOA’s Bernard Shusman in New York.
Video

Video Obama Goes to UN With Islamic State, Ebola on Agenda

President Obama goes to the United Nations General Assembly to rally nations to support a coalition against Islamic State militants in Iraq and Syria. He also will look for nations to back his plan to fight the Ebola virus in West Africa. As VOA White House correspondent Luis Ramirez reports, Obama’s efforts reflect new moves by the U.S. administration to take a leading role in addressing world crises.
Video

Video Migrants Caught in No-Man's Land Called Calais

The deaths of hundreds of migrants in the Mediterranean this week has only recast the spotlight on the perils of reaching Europe. And for those forunate enough to reach a place like Calais, France, only find that their problems aren't over. Lisa Bryant has the story.
Video

Video Westgate Siege Anniversary Brings Back Painful Memories

One year after it happened, the survivors of the terror attack on Nairobi's Westgate Shopping Mall still cannot shake the images of that tragic incident. For VOA, Mohammed Yusuf tells the story of victims still waiting for the answer to the question 'how could this happen?'
Video

Video Militant Assault in Syria Displaces Thousands of Kurds

A major assault by Islamic State militants on Kurds in Syria has sent a wave of new refugees to the Turkish border, where they were stopped by Turkish border security. Turkey is already hosting about 700,000 Syrian refugees who fled the civil war between the government and the opposition. But the government in Ankara has a history of strained relations with Turkey's Kurdish minority. Zlatica Hoke reports Turkey is asking for international help.
Video

Video Whaling Summit Votes to Uphold Ban on Japan Whale Hunt

The International Whaling Commission, meeting in Slovenia, has voted to uphold a court ruling banning Japan from hunting whales in the Antarctic Ocean. Conservationists hailed the ruling as a victory, but Tokyo says it will submit revised plans for a whale hunt in 2015. Henry Ridgwell reports from London.
Video

Video A Dinosaur Fit for Land and Water

Residents and tourists in Washington D.C. can now examine a life-size replica of an unusual dinosaur that lived almost a hundred million years ago in northern Africa. Scientists say studying the behemoth named Spinosaurus helps them better understand how some prehistoric animals adapted to life on land and in water. The Spinosaurus replica is on display at the National Geographic museum. VOA’s George Putic has more.
Video

Video Iraqi Kurdistan Church Helps Christian Children Cope find shelter in churches in the Kurdish capital, Irbil

In the past six weeks, tens of thousands of Iraqi Christians have been forced to flee their homes by Islamic State militants and find shelter in churches in the Kurdish capital, Irbil. Despite U.S. airstrikes in the region, the prospect of people returning home is still very low and concerns are starting to grow over the impact this is having on the displaced youth. Sebastian Meyer reports from Irbil on how one church is coping.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid

World Currencies

EUR
USD
0.7768
JPY
USD
108.84
GBP
USD
0.6124
CAD
USD
1.0999
INR
USD
61.042

Rates may not be current.