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8/1/14

Argentina Default: Argentina blames US mediator for debt default

Cabinet Chief Jorge Capitanich said his country was considering opening proceedings at international tribunals in The Hague after it was declared to be in technical default.

The announcement came just hours after last-minute talks in New York with a group of bond-holders failed.
The bond-holders are demanding a full pay-out of $1.3bn (£766m).

Argentina says the bond-holders are "vultures" using the South American country's debt problems to make a big profit.

The investors are US hedge funds that bought debt cheaply after Argentina's economic crisis in 2001-2002.

They are also known as "hold-outs" because they did not sign up to a restructuring of debt which the majority of bond-holders agreed to in 2005 and 2010
.
Under that deal, investors agreed to settle for about a third of what they were originally owed.

Read more: BBC News - Argentina blames US mediator for debt default

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