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Jul 31, 2014

Argentina defaults but investor see eventual deal possible

BUENOS AIRES, July 31 (Reuters) – Argentina defaulted for
the second time in 12 years after last-ditch talks with what it
called “vulture” creditors failed, though debt insurance prices
on Thursday suggested investors believed a deal could eventually
be reached.

After a long legal battle with hedge funds that rejected
Argentina’s debt restructuring following a 2002 default, Latin
America’s third-biggest economy failed to strike a deal in time
to meet a midnight payment deadline.

Jul 31, 2014

Argentina braces for market reaction to second default in 12 years

BUENOS AIRES, July 31 (Reuters) – Argentina defaulted for
the second time in 12 years after hopes for a midnight deal with
holdout creditors were dashed, setting up stock and bond prices
for declines on Thursday and raising chances a recession could
worsen this year.

After a long legal battle with hedge funds that rejected
Argentina’s debt restructuring following its 2002 default, Latin
America’s third-biggest economy failed to strike a deal in time
to meet a midnight deadline for a coupon payment on exchange
bonds.

Jul 26, 2014

Argentine default looms as time runs out for debt deal

BUENOS AIRES (Reuters) – Argentina looks set to default on its debt for the second time in 12 years next Thursday as negotiations with “holdout” investors seemingly go nowhere and neither side shows signs of blinking first, though a last minute deal can’t be discounted.

Latin America’s No. 3 economy has for years fought the holdout hedge funds which snapped up its junk bonds after its $100 billion default in 2002 and then refused the restructuring terms, suing for repayment in full.

Jul 7, 2014

Argentina asks mediator for stay on U.S. court debt ruling

NEW YORK/BUENOS AIRES (Reuters) – Argentina’s economy minister on Monday told a mediator in the country’s dispute with holdout investors that the U.S. court ruling against the country is “impossible” to fulfill and a stay is necessary in order to reach a solution for all creditors.

The country needs to make a deal with the holdouts who rejected debt restructurings after its 2002 default if it is to avoid a new default just as it struggles with recession and dwindling reserves.

Jul 2, 2014

Argentine holdout sees Repsol, Paris Club deals as model for talks

NEW YORK/BUENOS AIRES, July 1 (Reuters) – Argentina’s past
deals to settle claims with Spanish oil major Repsol SA and the
Paris Club of creditor nations could serve as examples of how to
negotiate a settlement to a decade-old debt dispute, one of the
lead holdout bondholders said on Tuesday.

Argentina faces a potential default unless it reaches a deal
with holdout investors by July 30 when it must make a payment on
its restructured sovereign debt. The holdouts rejected previous
restructuring deals Argentina offered after it defaulted on
about $100 billion in 2001-2002.

Jun 25, 2014

Analysis – Rising debt payments pressure Argentina to solve crisis

BUENOS AIRES (Reuters) – Argentina’s debt servicing costs are set to more than double in 2015 as foreign reserves slide to critically low levels, boosting pressure on the nation to resolve its 12-year-old battle with creditors and regain access to international credit markets.

Debt payments in foreign currency will rise to $9.4 billion (£5.54 billion) next year, $6 billion of which is due in October to pay holders of its Boden 2015 debt, according to government data analysed by Reuters. Argentina has agreed this year to make payments to the Paris Club, the World Bank and Repsol SA that will cost about $1.5 billion in 2015, according to Bank of America estimates. That could bring the total bill to $10.8 billion, compared with about $5 billion this year, including payments on the recent agreements.

Jun 25, 2014

Rising debt payments pressure Argentina to solve crisis

BUENOS AIRES (Reuters) – Argentina’s debt servicing costs are set to more than double in 2015 as foreign reserves slide to critically low levels, boosting pressure on the nation to resolve its 12-year-old battle with creditors and regain access to international credit markets.

Debt payments in foreign currency will rise to $9.4 billion next year, $6 billion of which is due in October to pay holders of its Boden 2015 debt, according to government data analyzed by Reuters. Argentina has agreed this year to make payments to the Paris Club, the World Bank and Repsol SA that will cost about $1.5 billion in 2015, according to Bank of America estimates. That could bring the total bill to $10.8 billion, compared with about $5 billion this year, including payments on the recent agreements.

Jun 18, 2014

Argentina flirts with debt swap as fear of default rises

BUENOS AIRES, June 17 (Reuters) – Argentina is taking steps
to place its restructured debt under local law so it can
continue making payments despite a string of adverse U.S. court
rulings, Economy Minister Axel Kicillof said on Tuesday as fears
of default increased.

Under the move, Argentina would swap bonds that are governed
by U.S. law for those governed by Argentine law, meaning they
would no longer be subject to the U.S. courts.

Jun 17, 2014

Analysis – New default for Argentina won’t be as bad as last default

BUENOS AIRES (Reuters) – Argentina’s battle with investors who rejected its proposals to restructure debt risks pushing the nation into a new default that would wreck its attempts to return to credit markets but not have the same economic effect as its catastrophic 2001-02 default.

The U.S. Supreme Court declined on Monday to hear Argentina’s appeal against lower court rulings that ordered it to pay in full the hedge funds which refused 2005 and 2010 debt swaps on $100 billion (£59 billion) in debt.

Jun 17, 2014

New default for Argentina won’t be as bad as last default

BUENOS AIRES (Reuters) – Argentina’s battle with investors who rejected its proposals to restructure debt risks pushing the nation into a new default that would wreck its attempts to return to credit markets but not have the same economic effect as its catastrophic 2001-02 default.

The U.S. Supreme Court declined on Monday to hear Argentina’s appeal against lower court rulings that ordered it to pay in full the hedge funds which refused 2005 and 2010 debt swaps on $100 billion in debt.

    • About Sarah

      "Sarah covers economic and political news from Argentina as part of the Reuters Latin America reporting team. The focus this year is on a shift in policy ahead of key elections in late 2015 and signs of a slowdown in an economy marked by one of the world’s highest inflation rates. Sarah moved to Buenos Aires in 2014 from Berlin, where she reported on Europe’s largest economy for five years during the euro zone debt crisis. She joined Reuters as a graduate trainee in the London HQ in 2007 and has also done assignments in Frankfurt and Vienna. ..."
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