Argentina Payment Deadline Is Here

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.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza