Argentina may default
Posted by Charles II on November 23, 2012
Heather Stewart and Uki Goni, The Guardian:
Argentinian politicians and global debt campaigners have responded with fury to a US court judgment that risks plunging the country back into default.
Elliott Capital Management and Aurelius Capital Management, regarded as “vulture funds” by Buenos Aires, won a ruling in a New York court on Wednesday that could force Argentina to hand over $1.3bn (£816m) in repayments and interest to the tiny minority of bondholders who refused to sign up to a hard-fought writedown of its debts after the country defaulted in 2001.
[Separately]Argentina was brought to a virtual standstill on Tuesday by the first national strike against her presidency, organised by the same Peronist labour unions who were once her staunchest supporters.The country ground to a halt as labour leaders demanded wage hikes to offset a yearly inflation rate that independent economists estimate at a yearly 25%. The middle class had already taken to the streets earlier this month when a million protesters took to the streets in various cities across Argentina also protesting against high inflation, economic stagnation, corruption in government and the rising crime rate that seems to be accompanying the ailing economy.
It’s stuff like this that makes me pessimistic about the economy. The vultures have not been chastised, and people are beginning to say, Burn it down rather than heel to them.
4 Responses to “Argentina may default”
Sorry, the comment form is closed at this time.