▲ Up
17:23 21-10-2016
MAIN АКИpress CA-News
About us On-line subscription
Argentina heads into default as debt talks fail

Bishkek (AKIpress) - PANews+BT_P-465b410c-fa1b-4e31-970e-9e0a1541fd01_I1 Talks aimed at averting Argentina's second default in 13 years has ended with bitter recriminations as the South American country said it could not accept a deal with US hedge fund creditors it dismisses as "vultures".

Court-appointed mediator Daniel Pollack said the failure triggered an imminent default that, among other things, would hurt the Argentine economy as well as bondholders who were not part of the dispute, the Associated Press reports.

"The full consequences of default are not predictable, but they are certainly not positive," he said.

A US court ruling previously blocked Argentina from making 539 million dollars (£319m) in interest payments due by midnight yesterday to other bondholders who separately agreed to restructuring plans with the country in 2005 and 2010.

Argentine economy minister Axel Kicillof emerged from the New York meeting with creditors and the mediator with an air of defiance, saying his government could find no middle ground.

"We're not going to sign an agreement that jeopardises the future of all Argentines," he said. "Argentines can remain calm because tomorrow will just be another day and the world will keep on spinning."

There was no immediate comment from the hedge funds, which refused to participate in the debt restructurings and won a US court judgment that they be paid the full value of their bonds plus interest - now estimated at about 1.5 billion dollars (£887m).

Mr Kicillof said the funds refused a compromise offer to settle their claim, although he gave no details of that proposal.

He said the funds would also not agree to a stay of the court order to allow Argentina to make the interest payments by last night's deadline and avert economic uncertainty for investors and citizens of the country, which is struggling with recession, a shortage of dollars and one of the world's highest inflation rates.

Mr Kicillof dismissed a decision by ratings agency Standard & Poor's to downgrade Argentina's foreign currency credit rating to "selective default" because of the missed interest payments.

"Who believes in the ratings agencies? Who thinks they are impartial referees of the financial system?" he said.

10:17 31.07.2014
17:04 Discrepancies in parliamentary majority coalition start long before initiative to make changes in Constitution – coalition leader17:01 Ulaanbaatar to host meeting of hydro scientists from 14 countries16:57 Tesla equips cars to drive completely on their own16:50 Financial police of Kyrgyzstan detect iPhone 5S and iPhone 6 smuggling16:42 Uzbekistan supplying vehicles to Middle East and Africa16:40 Indian film industry expected to grow, reaching $3.7 bln by 202016:28 Privatization of state property brings KGS 7.5 bn to budget in 5 years16:27 Training course for Kyrgyz law enforcers on countering drug crimes concludes in Osh16:21 South Korea reportedly tightens visa rules for Mongolians16:13 Low voter turnout leaves Ulaanbaatar City Council seats open after Wednesday's election16:13 OSCE to help create Internet portal of civil society organizations in Uzbekistan16:11 Kazakh central bank marks growth in 9 months16:00 Chief of General Staff reprimanded over theft and sale of weapons by State Defense Committee Chaiman's driver15:53 Kazkommertsbank announces new brand name Qazkom15:50 Iran reportedly takes more U.S. hostages, wanting more ransom money15:38 Prime Minister reprimands Director of State Agency for Fuel and Energy Complex Regulation15:34 Mongolia views expansion of relations with NAMBC15:22 Kazakh, Finnish Parliament Speakers meet in Helsinki15:09 Russian Foreign Intelligence Service chief awarded state order by Karim Massimov15:08 USAID improves guest house services in southern Kyrgyzstan
-1° C
+12° C
+8° C
+14° C
+13° C
+4° C
exchange rates

© AKIpress News Agency - 2001-2016. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75