This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-28578179

The article has changed 7 times. There is an RSS feed of changes available.

Version 0 Version 1
'Offer rejected' on Argentine debt 'No deal' in Argentine debt talks
(about 2 hours later)
Argentina's Economy Minister Axel Kicillof says "hold out" investors rejected an offer as the debt default deadline looms. Argentina's Economy Minister Axel Kicillof says "hold-out" investors have rejected an offer as the debt default deadline looms.
With no agreement in place, Argentina will soon default, said a mediator in the case.
Earlier, the lead lawyers representing Argentina, Jonathan Blackman and Carmine Boccuzzi of Cleary Gottlieb Steen & Hamilton, left the talks.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.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.A US judge has ruled that they must be paid by Wednesday night if no deal is agreed.
Speaking in a press conference in New York in his native Spanish, Mr Kicillof said Argentina will not do anything illegal. "Unfortunately, no agreement was reached and the Republic of Argentina will imminently be in default," Daniel Pollack, the court-appointed mediator in the case, said in a statement on Wednesday evening.
The "hold-outs" are US hedge funds that bought debt on the cheap during Argentina's darkest hours and never agreed to restructuring. A fresh default is not expected to affect Argentina's economy as it did more than a decade ago, when dozens were killed in street protests and the authorities froze savers' accounts to halt a run on the banks.
"The full consequences of default are not predictable, but they certainly are not positive," Mr Pollack said.
Speaking at a press conference in New York in his native Spanish, Mr Kicillof said Argentina will not do anything illegal.
Bond reactionBond reaction
President Cristina Fernandez de Kirchner calls them vultures, accusing them of taking advantage of Argentina's debt problems to make a big profit. The "hold-outs" refers to US hedge funds that bought debt relatively cheaply during Argentina's darkest hours and never agreed to restructuring.
Ratings agency Standard & Poor's downgraded the country's rating to default earlier, although the price of the bonds did not react. President Cristina Fernandez de Kirchner has called them vultures, accusing them of taking advantage of Argentina's debt problems to make a big profit.
Ratings agency Standard & Poor's (S&P) downgraded the country's rating to default earlier on Wednesday, although the price of the bonds did not react.
S&P noted that it could revise the rating if Argentina were to find some way to make the payments.S&P noted that it could revise the rating if Argentina were to find some way to make the payments.
The hedge funds are demanding Argentina make interest payments on debt which defaulted in 2001, even though it was bought at less than face value. The hedge funds are demanding Argentina make interest payments on debt which it defaulted on in 2001, even though it was bought at less than face value.
Without a deal, a US judge blocked payments to other bondholders who agreed a separate deal for Argentina to manage the debt. A US judge has blocked payments to other bondholders who agreed a separate deal with Argentina to manage the debt, till the time an agreement with the hold-outs is reached.
Mr Kicillof said he planned to return to Argentina after the news conference, saying the country will do what is needed to face what he called an unfair situation.
He re-iterated that Argentina cannot pay the hold-out hedge funds without triggering a clause that would cause it to renegotiate with bondholders who accepted new debt agreements.