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 Argentina defaults for second time 
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 Argentina defaults for second time
http://www.bbc.co.uk/news/business-28578179

Argentina has defaulted on its debt - for the second time in 13 years - after last-minute talks in New York with a group of bond-holders ended in failure.

So-called "vulture fund" investors were demanding a full pay-out of $1.3bn (£766m) on bonds they hold.

Argentina has said it cannot afford to do so, and has accused them of using its debt problems to make a big profit.

Bond reaction
The investors, also known as "hold-outs", are US hedge funds that bought debt cheaply after Argentina's economic crisis.

They never agreed to the restructuring accepted by the majority of bond-holders.

President Cristina Fernandez de Kirchner has described as vultures the minority bond-holders - including Aurelius Capital Management and NML Capital.

She accuses them of taking advantage of Argentina's debt problems to make large profits.

Ratings agency Standard & Poor's (S&P) downgraded the country to "default" earlier on Wednesday, although the price of the bonds did not react.

S&P noted that it could revise the rating if Argentina were to find some way to make the payments.

The hedge funds are demanding Argentina make interest payments on debt which it defaulted on in 2001, even though it was bought at less than face value.

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I must say, these hedge funds sound like some truly greedy b*st*rds, wanting interest payments on debts they bought cheaply. :flame

Simon

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Thu Jul 31, 2014 1:12 pm
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