Creditors say that no solution in sight to debt conflict with South American country
The threats are "irrational," Cabinet Chief
He spoke a day after
Aurelius said in a statement that it hasn't received a worthwhile offer yet from any of the banks that have approached it.
The banks want to buy the judicial claim that Aurelius and other hedge funds won against
The country went into default
The government argued that it couldn't pay more to the plaintiffs without violating a rights upon future offers clause that would steep it in more than
Based on this clause,
Aurelius said that
Capitanich shot down such claims as "unfounded" and called the hedge funds a "global mafia."
While the war of words plays out, economists warn that the country's economy could fall deeper into recession.
"There is not a panic, but there are concerns of a further devaluation of the peso against the dollar," said
He said these concerns push people to take refuge in dollars on concerns of a worsening economy, higher inflation and a weaker peso.
Indeed, demand for dollars on the black market surged this week, causing the peso to drop to a record low of 13.20 per dollar Thursday from 12.80 Monday.
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