Fitch declares Argentina in 'restricted default'
Published on Aug 1, 2014 6:05 AM
WASHINGTON (AFP) - Ratings agency Fitch declared Argentina in default on its bonds for the second time in 13 years on Thursday after talks between Buenos Aires and hedge fund creditors ended with no deal.
Fitch called the country in "restricted default" on its foreign currency debt, because, hobbled by a New York court order, it only missed a payment on one class of debt and has paid other creditors.
The sovereign rating downgrade came after marathon negotiations with hedge fund creditors in New York on Tuesday and Wednesday failed to reach a deal by the time the payment was due.
Argentina had deposited the US$539 million (S$672.3 million) interest payment due to exchange bond holders - creditors who had accepted a restructuring deal after the previous default - in a bank account when it was due at the end of June.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!