Standard and Poor's announced Wednesday night the country defaulted on payment of
"Default is not a mere 'technical' condition, but rather a real and painful event that will hurt real people," said
The default is expected to put immense pressure on the Argentine economy, which is already struggling to recover from the recession, and could lead to higher inflation and a weaker currency.
The holdout creditors --
The Argentine government and banks have been able to restructure 93 percent of its debt but the remaining creditors went to court in the U.S., which ruled last month that if
Economy minister Axel Kicillof met the holdout creditors this week in
"What the vulture funds want ... is that they be paid more than the 92.4 percent," said Kicillof. "This I have talked about many times and I have repeated it today before the funds suing us: it can't be done... can't be done."
Argentine banks attempted to assist the government by offering to pay off the holdout creditors and wait to be paid next year with government bonds, but it seems like the proposal came to nothing.
Most Popular Stories
- Doctor Who Christmas Episode Begins Production
- HCL America Adding 1,200 IT Jobs
- Medical Mfg. Jobs Coming to Dayton
- Michael Jackson, Freddie Mercury on Previously Unreleased Queen Cut
- Longtime Unemployed to Get Help in Las Vegas
- SpaceX Aims for Predawn Launch on Saturday
- Women Key to Democratic Party: Clinton
- U.S. Chamber Caught Up in Tax Inversion Question
- Feds Won't Say How Many Border Crossers Jailed
- Christie Didn't Order Bridge Shut Down, Feds Say