Argentina's debt fight: What it is, why it matters Monday, 30 Jun 2014 | 8:00 AM ET The Associated Press LINK Time to resolve Argentina's long battle with creditors is running out.
Argentina owes an interest payment to the majority of its creditors on Monday, though the government has a 30-day grace period after that to avoid going into another catastrophic default.
Last week, the U.S. Supreme Court ruled against Argentina, letting stand a lower court ruling that it must pay off hedge funds that own bonds left over from the country's default in 2001. President Cristina Fernandez has said Argentina couldn't afford to pay them while also making regular interest payments to other lenders.
On Friday a federal judge pleaded with Argentina to continue negotiating with the hedge funds. At the same time, the judge called Argentina's attempt to make its regular interest payment illegal.
One misstep and Argentina could slide into another default, thirteen years after a record $100 billion default devastated its economy.
Just how did Argentina wind up in this mess? And why is a U.S. court telling another country what to do?
Argentina's debt fight: What it is, why it matters Monday, 30 Jun 2014 | 8:00 AM ET The Associated Press LINK Time to resolve Argentina's long battle with creditors is running out.
Argentina owes an interest payment to the majority of its creditors on Monday, though the government has a 30-day grace period after that to avoid going into another catastrophic default.
Last week, the U.S. Supreme Court ruled against Argentina, letting stand a lower court ruling that it must pay off hedge funds that own bonds left over from the country's default in 2001. President Cristina Fernandez has said Argentina couldn't afford to pay them while also making regular interest payments to other lenders.
On Friday a federal judge pleaded with Argentina to continue negotiating with the hedge funds. At the same time, the judge called Argentina's attempt to make its regular interest payment illegal.
One misstep and Argentina could slide into another default, thirteen years after a record $100 billion default devastated its economy.
Just how did Argentina wind up in this mess? And why is a U.S. court telling another country what to do?
Almost all of the creditors accepted a deal but Singer bought some bonds and took Argentina to a US court who ruled in his favour, so the court ordered that Argentina had to make the debt (that he bought at a discount) whole.
I don't know - Argentina might just tell the US court to take a hike and default. It seems to have been one of the more memorable failures of the IMF and there have been quite a few.
Right now I think that Argentina are more interested in the World Cup than this fiasco.
Any expressed market opinion is my own and is not to be taken as financial advice
no, they still have few other options, one of them is for their banks to buy the debt from those pesky bondholders, and then wait until 2015 to repay their banks with triggering a whole mess ( same repayment for all bondholders).
Looks like Argentina ran out of Pesos. Maybe the Central Bank is still running Windows 95 and couldn't handled a deposit of 325 billion pesos in the government's account and they got a blue screen of death.
A currency issuer can't run out of it's own currency. Right? Right?
Looks like Argentina ran out of Pesos. Maybe the Central Bank is still running Windows 95 and couldn't handled a deposit of 325 billion pesos in the government's account and they got a blue screen of death.
A currency issuer can't run out of it's own currency. Right? Right?
Their debts were not in Peso's
Any expressed market opinion is my own and is not to be taken as financial advice
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