Argentina will default on its debt in about 4 hours unless a deal is reached
42 replies, posted
[url]http://www.bbc.co.uk/news/business-28541071[/url]
[quote]Right from the start, the Argentine government's attitude to its debt dispute with US hedge funds has made it all but inevitable that the country will fail to reach a compromise.
"We're not going to default, they'll have to invent a new term to define what's happening," said President Cristina Fernandez de Kirchner last week, deep in denial, as the deadline loomed for the country to meet its obligation to the so-called "vulture funds".
Thanks to a US court decision, Argentina is required to pay $1.3bn (£766m) to investors who bought its bonds at a big discount after its economic meltdown and previous default in 2001-02.
It failed to do so by 30 June and a 30-day grace period is now set to expire.
But the government has been resisting this course of action, because it fears that this could lead to the unravelling of other debt deals that it struck with most of its creditors.
As a result, a second default is now in prospect, and the outcome could be painful for an economy that is already in recession.[/quote]
Earlier today they were like:
[url]http://www.bbc.co.uk/news/business-28558121[/url]
[quote]Argentina's economy minister Axel Kicillof has returned to the negotiating table in a last-ditch attempt to prevent the country defaulting on its bonds.
Mr Kicillof's talks with "hold-out" investors ended late on Tuesday night in New York without agreement.
They are demanding a full pay-out of $1.3bn (£766m) on the bonds they hold.
A US judge has ruled that the "hold-outs" must be paid by Wednesday night if no deal is agreed.[/quote]
But then:
[url]http://www.bbc.co.uk/news/business-28578179[/url]
[quote]Argentina's Economy Minister Axel Kicillof says "hold out" investors rejected an offer as the debt default deadline looms.
Earlier, the lead lawyers representing Argentina, Jonathan Blackman and Carmine Boccuzzi of Cleary Gottlieb Steen & Hamilton, left the talks.
Investors are demanding a full pay-out of $1.3bn (£766m) on bonds they hold.
A US judge has ruled that they must be paid by Wednesday night if no deal is agreed.[/quote]
So now it's pretty much like:
[url]http://www.reuters.com/article/2014/07/30/us-argentina-debt-idUSKBN0FZ0AM20140730[/url]
[quote]Without a stay of U.S. District Judge Thomas Griesa's order preventing Argentina from making the July 30 deadline - representing the end of a 30-day grace period - for a coupon payment on exchanged bonds, the country will fall into default for the second time in 12 years.[/quote]
They've got until midnight, which is 3 am UTC
Can't this distort the economy of South America, and the US to a lesser extent?
So they are just saying "Fuck you we wont pay you any money" to whoever they took a loan from?
That wont possibly create any conflicts at all and diplomatic repercussions. But this has happened already? Who the fuck would want to lend money to someone who has proved before they cant pay their debts
There's only one answer: Repossess Argentina.
When was the last time a country defaulted, and - most importantly - will we get a casus belli?
Fuck you guys, we already paid
[QUOTE=Fatfatfatty;45548213]So they are just saying "Fuck you we wont pay you any money" to whoever they took a loan from?
That wont possibly create any conflicts at all and diplomatic repercussions. But this has happened already? Who the fuck would want to lend money to someone who has proved before they cant pay their debts[/QUOTE]
No, the problem is they restructured their loans and now they owe less. The investors did this because some money is better than no money. But one group bought the debt and now stands to make 10x their money by holding the economy hostage.
If Argentina pays that group their money the other investors can sue Argentina for their full amount owed. If they don't they default and no one gets their money. They are literally fucked unless they reach and agreement.
Haven't they already done this before?
[QUOTE=toaster468;45548260]No, the problem is they restructured their loans and now they owe less. The investors did this because some money is better than no money. But one group bought the debt and now stands to make 10x their money by holding the economy hostage.
If Argentina pays that group their money the other investors can sue Argentina for their full amount owed. If they don't they default and no one gets their money. They are literally fucked unless they reach and agreement.[/QUOTE]
If the other group bought the debt why do the original investors have a claim to compensation?
[QUOTE=toaster468;45548260]No, the problem is they restructured their loans and now they owe less. The investors did this because some money is better than no money. But one group bought the debt and now stands to make 10x their money by holding the economy hostage.
If Argentina pays that group their money the other investors can sue Argentina for their full amount owed. If they don't they default and no one gets their money. They are literally fucked unless they reach and agreement.[/QUOTE]
Pretty much this.
We're fucked. It doesn't matter what we do now, my money is gonna be worth a whole lot less by the end of the next month.
[QUOTE=RAG Frag;45548357]If the other group bought the debt why do the original investors have a claim to compensation?[/QUOTE]
Sorry I didn't explain this clearer. The group who is causing this are the ones who bought the debt from another investor. The total debt owed is owned by many different investors. Those other investors are the ones who could sue to claim their total money owed.
[QUOTE=Tumama;45548359]Pretty much this.
We're fucked. It doesn't matter what we do now, my money is gonna be worth a whole lot less by the end of the next month.[/QUOTE]
Buy gold and silver bullion
Also, where we will get 1.2 billion? AND DOLARS?! That is high as fuck!
[QUOTE=MasterFen006;45548234]There's only one answer: Repossess Argentina.[/QUOTE]
we start with the falklins
[QUOTE=MasterFen006;45548234]There's only one answer: Repossess Argentina.[/QUOTE]
South (United States of) America
[QUOTE=Zender Troop;45548514]Also, where we will get 1.2 billion? AND DOLARS?! That is high as fuck![/QUOTE]
Well you are a country, so its a lot, but on country terms I don't think its that huge if you're not already bankrupt
Isn't a lot of the debt from the military junta?
[QUOTE=JustExtreme;45548714]Isn't a lot of the debt from the military junta?[/QUOTE]
I'm almost certain they defaulted on that already like 15 years ago
I'll be honest here; I have no fucking idea how a default works at this level.
I tried to understand, I did a bit of research, and I still have no idea what's going to happen.
[QUOTE=nikomo;45548755]I'll be honest here; I have no fucking idea how a default works at this level.
I tried to understand, I did a bit of research, and I still have no idea what's going to happen.[/QUOTE]
everyone is fucked and cries is how it happens
people who are owed money don't get shit
the country is fucked because they defaulted
[editline]31st July 2014[/editline]
[url]http://en.wikipedia.org/wiki/1998%E2%80%932002_Argentine_great_depression[/url] Here's the other time they defaulted I think
looks like we'll get a shitload of argentinians moving to uruguay
They won't default.
Better distract them with the Falklands.
wonder if they'll try to sell the Falklands back to britain for 1.3B$
so they just defaulted?
[QUOTE=Emperorconor;45549942]so they just defaulted?[/QUOTE]
They're about to because the talks failed
I think a poster on /r/argentina summed it up well, as ominous as it may sound:
[QUOTE]All this has happened before, and all of it will happen again.[/QUOTE]
I'm honestly not too sure how this is going to affect the economy. Currency is going to take a nosedive in value, but that's happened before. Hell it happened earlier this year. Industry's probably going to go down the shitter, [I]again.[/I] People are going to get fired massively, [I]again,[/I] and companies/consumers are going to hold off from buying new equipment [I]again.[/I]
As bad as it sounds, some economist was estimating it to be less bad than [URL="http://en.wikipedia.org/wiki/Corralito"]2001's ordeal.[/URL]
I can imagine whats going on in their president's head
"THIS WOULD HAVE NEVER HAPPENED IF THE FALKLANDS WERE OURS"
[QUOTE=Emperorconor;45549942]so they just defaulted?[/QUOTE]
Yep, woop there it is
[url]http://bbc.co.uk/news/business-28578179[/url]
So one group literally managed to fuck over an entire country?
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