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| Argentina defaults for second time | Argentina defaults for second time |
| (about 2 hours later) | |
| Argentina has defaulted on its debt - for the second time in 13 years - after last-minute talks in New York with a group of bond-holders ended in failure. | Argentina has defaulted on its debt - for the second time in 13 years - after last-minute talks in New York with a group of bond-holders ended in failure. |
| So-called "vulture fund" investors were demanding a full pay-out of $1.3bn (£766m) on bonds they hold. | So-called "vulture fund" investors were demanding a full pay-out of $1.3bn (£766m) on bonds they hold. |
| Argentina has said it cannot afford to do so, and has accused them of using its debt problems to make a big profit. | Argentina has said it cannot afford to do so, and has accused them of using its debt problems to make a big profit. |
| A US judge had set a deadline of 04:00 GMT on Thursday for a deal. The crisis stems from Argentina's 2001 default. | A US judge had set a deadline of 04:00 GMT on Thursday for a deal. The crisis stems from Argentina's 2001 default. |
| Late on Wednesday evening, Argentina's Economy Minister Axel Kicillof said the investors had rejected the government's latest offer. | Late on Wednesday evening, Argentina's Economy Minister Axel Kicillof said the investors had rejected the government's latest offer. |
| "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. | "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 latest default is expected to exacerbate problems in Argentina's recession-hit economy, analysts say. | |
| However, the effect will not compare with the consequences of the country's economic meltdown in 2001-02, when savers' accounts were frozen to stop a run on the banks and violent street protests led to dozens of deaths. | |
| "The full consequences of default are not predictable, but they certainly are not positive," Mr Pollack said. | "The full consequences of default are not predictable, but they certainly are not positive," Mr Pollack said. |
| Speaking at a news conference in New York, Mr Kicillof said Argentina would not do anything illegal. | Speaking at a news conference in New York, Mr Kicillof said Argentina would not do anything illegal. |
| Bond reaction | Bond reaction |
| The investors, also known as "hold-outs", are US hedge funds that bought debt cheaply after Argentina's economic crisis. | The investors, also known as "hold-outs", are US hedge funds that bought debt cheaply after Argentina's economic crisis. |
| They never agreed to the restructuring accepted by the majority of bond-holders. | They never agreed to the restructuring accepted by the majority of bond-holders. |
| President Cristina Fernandez de Kirchner has described as vultures the minority bond-holders - including Aurelius Capital Management and NML Capital. | President Cristina Fernandez de Kirchner has described as vultures the minority bond-holders - including Aurelius Capital Management and NML Capital. |
| She accuses them of taking advantage of Argentina's debt problems to make large profits. | She accuses them of taking advantage of Argentina's debt problems to make large profits. |
| Ratings agency Standard & Poor's (S&P) downgraded the country to "default" earlier on Wednesday, although the price of the bonds did not react. | Ratings agency Standard & Poor's (S&P) downgraded the country 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 it defaulted on 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. |
| The US courts have blocked payments to other bondholders who agreed a separate deal with Argentina, until agreement with the "hold-outs" is reached. | The US courts have blocked payments to other bondholders who agreed a separate deal with Argentina, until agreement with the "hold-outs" is reached. |
| Mr Kicillof said he planned to return to Argentina after the news conference, saying the country would do what is needed to deal with what he called an unfair situation. | Mr Kicillof said he planned to return to Argentina after the news conference, saying the country would do what is needed to deal with what he called an unfair situation. |
| He reiterated that Argentina could not pay the hedge funds without triggering a clause that would force it to renegotiate with bondholders who accepted new debt agreements. | He reiterated that Argentina could not pay the hedge funds without triggering a clause that would force it to renegotiate with bondholders who accepted new debt agreements. |
| Are you in Argentina? Are you concerned about the implications of Argentina defaulting? Send us your comments and experiences. You can email us at haveyoursay@bbc.co.uk using the subject line 'Argentina defaults'. | Are you in Argentina? Are you concerned about the implications of Argentina defaulting? Send us your comments and experiences. You can email us at haveyoursay@bbc.co.uk using the subject line 'Argentina defaults'. |