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 [...]

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