Argentina denies report it is in default

At a hastily convened press conference in New York on Thursday morning (AEST), he rejected suggestions the country had entered default and said Argentina would continue to deny what he calls “vultures” full repayment.

Former World Bank official and president emeritus of the Washington-based think tank Inter-American Dialogue Peter Hakim told The Australian Financial Review it was “a costly shame”. “Just a couple of months ago the Argentine government seemed to understand how dicey its economic decision was and began efforts to move from financial pariah to a more reliable international actor,” he said. 3 Rio Tinto sells Mozambique coal assets for $US50 …

Argentina has the money, but a New York court has continued to rule that it cannot pay any creditors until it meets its obligations in full to NML Capital, one of a small group of hedge funds that have refused to renegotiate terms of debt picked up after the history-making sovereign default.

Argentina on Thursday denied reports it is in default on a $US539 million ($578 million) interest payment to bondholders who took heavy discounts after the country’s record $US95 billion default in 2001.

The NML case wound its way through the United States courts until 2012, when a federal judge in Manhattan issued a ruling that said Argentina could not make payments to exchange bondholders without paying the holdouts.

The government of Cristina Fernández de Kirchner fears that bowing to NML Capital would set a precedent for other hold-out investors and is also worried about contracts with exchange bondholders that prevent anyone getting a better deal than those bondholders until a special clause expires at the end of this year.

Read more here: SMH


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