Argentina will probably default shortly on its debt. Wall Street vultures bought Argentina debt cheap and refuse to negotiate or make concessions, even though the vast bulk of creditors have. The vultures want 100% payment. Argentina can’t afford that. Worse, if Argentina pays the holdouts at 100%, a clause in the contracts means that have to pay all other creditors at 100%. Plus, according to US law, it must pay all creditors, not just those who agreed to a haircut.
President Kirchner says that payment would amount to $15bn (Â£8.8bn), which is about half of the entire central bank foreign exchange reserves, so it’s not feasible for Argentina to do this. Not that the holdout jackals. They have no interest in Argentina beyond extracting money for it.
Argentina may default on July 30, with unpredictable and probably adverse ramifications for the world economy.