Popular News From Popular Sites: Argentina braces for market reaction to second default in 12 years

Wednesday, July 30, 2014

Argentina braces for market reaction to second default in 12 years

Argentina's Economy Minister Axel Kicillof speaks to the media at a press conference at the Argentine Consulate in New York By Sarah Marsh BUENOS AIRES (Reuters) - Argentina defaulted for the second time in 12 years after hopes for a midnight deal with holdout creditors were dashed, setting up stock and bond prices for declines on Thursday and raising chances a recession could worsen this year. After a long legal battle with hedge funds that rejected Argentina's debt restructuring following its 2002 default, Latin America's third-biggest economy failed to strike a deal in time to meet a midnight deadline for a coupon payment on exchange bonds. "It is going to complicate life for businesses like YPF which were going to look externally for financing," said Camilo Tiscornia, a former governor of Argentina's central bank. State-controlled energy company YPF needs funds to develop Argentina's huge Vaca Muerta shale formation.




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