Argentina’s default explained

Last week, Argentina defaulted for a second time. What are the implications for the country – and for the rest of the world? Matthew Partridge reports.

What happened?

Argentina was declared to be in ‘selective default’ by Standard and Poor’s last Thursday. This took place after a deadline imposed by a US court to reach a deal with holdout owners of government bonds expired. (The ‘holdouts’ are owners of bonds who have refused to accept interest-rate cuts agreed as part of two rescue deals for Argentina.)

The problem is that, due to the court’s ruling, Argentina is [...]

Want to read this article now?

MoneyWeek magazine

Latest issue:

Magazine cover
Going bust

What happens when countries default?

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Vote in the MoneyWeek Readers' Choice Awards

Vote for your favourite financial services companies in the inaugural MoneyWeek Awards, and you could win a year's subscription to MoneyWeek magazine. Find out more and vote here.

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.