Argentina Defaults, Blames US

US' handling of talks with bondholders was 'shameful'

By Arden Dier,  Newser Staff

Posted Jul 31, 2014 9:43 AM CDT

(Newser) – First the World Cup loss, now this: Argentina has defaulted for the second time in 13 years—but apparently through no fault of its own. Standard & Poor's considered the country in default yesterday after it failed to make interest payments to its bondholders and CNN reports that may mean "painful consequences," including a spike in borrowing costs. But as the BBC notes, Argentina is blaming the US, with the country's Cabinet chief noting "the responsibility lies with a state, that of the United States of America" thanks to its "shameful" handling of talks with US bondholders—or as Argentina called them, "vultures"—in New York.

The "holdout" creditors want a full payout of $1.3 billion but "we're not going to sign an agreement that jeopardizes the future of all Argentines," economy minister Axel Kicillof told the AP, noting that the nation's own proposal was rejected. But as the midnight deadline approached with no sign of a deal, he didn't seem too bothered. "Argentines can remain calm because tomorrow will just be another day and the world will keep on spinning," he said. Meanwhile, the Cabinet chief, who also decried an "incompetent" mediator, says he will denounce the "vulture funds" before The Hague as well as the UN General Assembly.

Axel Kicillof, Argentina's economy minister, addresses member of the news media after a negotiation session, Wednesday July 30, 2014.
Axel Kicillof, Argentina's economy minister, addresses member of the news media after a negotiation session, Wednesday July 30, 2014.   (AP Photo/Craig Ruttle)
In this Friday, July 25, 2014 photo, two homeless men sit on a bench in front of Government House drinking mate in Buenos Aires, Argentina.
In this Friday, July 25, 2014 photo, two homeless men sit on a bench in front of Government House drinking mate in Buenos Aires, Argentina.   (AP Photo/Natacha Pisarenko)
In this Friday, July 25, 2014 photo, a man looks through a garbage binin Buenos Aires, Argentina. Argentina entered default for the eighth time in its history.
In this Friday, July 25, 2014 photo, a man looks through a garbage binin Buenos Aires, Argentina. Argentina entered default for the eighth time in its history.   (AP Photo/Natacha Pisarenko)
An activist holds a banner that reads Homeland or vultures, be strong Argentina, in a demonstration against a US hedge fund, known locally as vulture funds,  in Buenos Aires, July 30, 2014.
An activist holds a banner that reads "Homeland or vultures, be strong Argentina", in a demonstration against a US hedge fund, known locally as "vulture funds", in Buenos Aires, July 30, 2014.   (AP Photo/Victor R. Caivano)
An activist holds a newspaper with a headline that reads in Spanish Argentina or Vultures.
An activist holds a newspaper with a headline that reads in Spanish "Argentina or Vultures".   (AP Photo/Victor R. Caivano)
Argentine President Cristina Fernandez waves as she and Uruguay President Jose Mujica arrive at the 46th Mercosur Summit, in Caracas, Venezuela, Tuesday, July 29, 2014.
Argentine President Cristina Fernandez waves as she and Uruguay President Jose Mujica arrive at the 46th Mercosur Summit, in Caracas, Venezuela, Tuesday, July 29, 2014.   (AP Photo/Fernando Llano)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
13%
8%
4%
9%
3%
64%
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   HitFix   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   CollegeHumor   |   Barstool Sports   |   OK!