|Argentina Faces Brink of Debt Default|
|by Tom McGregor||Tue, Feb 18, 2014, 08:39 PM|
The Argentina government in Buenos Aires is threatening to default on its debt to creditors in order to avoid making a $1.3 billion payment.
According to the BBC News, "Argentina has petitioned the US courts to try to stall a $1.3bn (£0.8bn) repayment to its creditors. If the petition to the Supreme Court is not successful, the country risks triggering a default and debt crisis."
President Cristina Fernandez de Kirchner is refusing to honor debt repayments unless bondholders agree to major discounts.
As reported by the BBC, "The money is owed to creditors who refused to participate in a debt restructuring process arising from the country's $100bn default 12 years ago. Most bondholders agreed to accept a hefty discount on what they were owed, but those who held out are demanding to be repaid in full."
The nation's annual inflation has surged to over 25%.
To read the entire article from the BBC News, link here:
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