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Argentina sounds alarm, says close to 'technical default'

Published time: June 26, 2014 15:04
Reuters / Andrew Biraj

Reuters / Andrew Biraj

Argentina’s economy is on a collision course, and is headed for default following a US Supreme Court ruling that could send creditors demanding bond payments, Economic Minister Axel Kicillof warned UN diplomats.

By June 30, the country needs to pay out creditors for billions of dollars of bonds that were issued before its $95 billion default in 2001.

"Whichever way you look at it this ruling is forcing Argentina towards the risk of economic crisis,” Reuters quotes Kicillof talking at the UN headquarters in New York on Wednesday.

"… this is going to push us into a technical default," he added.

Argentina is asking for more time to negotiate a solution with the creditors that Kicilloff refers to as “vulture funds”. Argentina must pay $1.33 billion to NML Capital, a hedge fund and subsidiary of Elliot Capital Management.

The country only has $28.5 billion in foreign currency reserves, and will not be able to meet the enormous demand. If they don’t pay, the US can revoke its privilege to pay bond holders through Argentina’s bank in the United States, the Bank of New York Mellon. Argentina’s President Cristina Fernandez de Kirchner has called this ‘extortion’.

Comments (16)

 

Morningside 27.06.2014 14:07

The U.S is in all ways exceptional. Stupidity is always ruling when majority based democratic chosen men lead. It is called nature at work. Take the E.U/Ukraine. Watch the leaders posing for pictures. It resemble dog mentality.
That makes the U.S, trainer, looking for higher greens.
Like Argentina.

 

Daniel Pipes 27.06.2014 11:48

tblizz 27.06.2014 02:46

Good to see the quotes on private debt loaned as "bank credit" pretending to be money which are posted here. I could add probably another 50.
Argentina, why not just tell the U.S. not-so-supreme court to go to he ll and let that greedy Talmudist piece of trash eat the defaulted notes he bought for pennies on the dollar? Bankruptcy laws exist for a reason, such as not allowing one or a few greedy crooks to destroy the lives of a whole country's people.

  



Well said!

 

Max Steel 27.06.2014 10:52

THE U.S. NEEDS TO SHUT IT.

Since when does the "united states" supreme court determine what laws will be applied to the "country" of Argentina?

Are they SERIOUSLY saying that they hold jurisdiction over a "sovereign" ; nation? Or at they saying outright that the U.S. "owns" and therefore "controls" Argentina?

View all comments (16)
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