Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.


Argentina faces debt default but won’t “submit to extortion” by US vulture fund

Published time: June 17, 2014 15:11
Argentina's President Cristina Fernandez de Kirchner (Reuters / Argentine Presidency)

Argentina's President Cristina Fernandez de Kirchner (Reuters / Argentine Presidency)

Argentina could face a debt default by June 30, the country’s second in 13 years. President Cristina Fernandez de Kirchner said her country will not be able to pay fines imposed by the US Supreme Court in connection with the previous default.

"What I cannot do as president is submit the country to such extortion," Kirchner said in a national address on Monday evening.

The US Supreme Court has ordered Argentina to pay $1.5 billion to NML Capital, a hedge fund and subsidiary of Elliot Capital Management. By June 30, Argentina must pay up to $907 million, or risk losing the ability to pay bond holders through Argentina’s bank in the United States, the Bank of New York Mellon.

The money in question is billions of dollars of bonds the country issued before its $95 billion default in 2001; the largest government default in history.

Argentina said it will not pay the court-ordered sum.

NML is just one bondholder that wants to seek damages, and if others go after Argentina, the final claims could total upwards of $15 billion.

US federal law cannot protect Argentina’s assets, and the judges ruled seven to one that if Argentina doesn’t pay, assets worldwide- from military equipment to embassy property- could be seized.

The ruling could open a new slew of financial claims against Argentina, because other bondholders could go after Argentinean assets, hoping to get back money lost.

"It's our obligation to take responsibility for paying our creditors, but not to become the victims of extortion by speculators," Kirchner said.

Another default by Argentina could make attracting foreign investment next to impossible. To avoid a default, Argentina can pay its investors and continue to service its restructured debt, which is unlikely as the country doesn’t have enough money to do both simultaneously. Another option is to negotiate with investors or to complete bypass the American ruling, which could be a legal gray area. The last option is to default on its debts.

Comments (20)


Ed Camilo 19.06.2014 01:20

Argentina should condemn the US supreme court for mingling in its internal affairs. The Gringos have no shame!


RockyRacoon 18.06.2014 12:46

Odious debt. It is cancelled.
Have a good day.


Freaky 18.06.2014 08:57

He Has Failed 17.06.2014 16:44

Wow. It sounds like a female version of Obama is running Argentina. Take money from good people, give it to your political friends, and then never intend to pay it back.


RFLOL........You really think that the US dollar is real money....? It exist by fooling the world and is counterfeit money.
I understand this women she gets angry because she got fooled so many years by a so called good friend, who use the method divide and conquer and rule the world, no matter what.

View all comments (20)
Add comment

Authorization required for adding comments

Register or



Show password


or Register

Request a new password


or Register

To complete a registration check
your Email:


or Register

A password has been sent to your email address

Edit profile



New password

Retype new password

Current password



Follow us

Follow us