Argentina Loses Debt Battle
Argentina is in default for the eighth time in its history. The breakdown occurred over a dispute with a small group of “vulture” investors, who bought up cheap Argentine bonds after the 2001 default. These New York hedge funds demand full payment, but the government accuses them of extortion and insists that it would be illegal under Argentine law to pay investors who won’t restructure. The markets seem unperturbed by the news, but ordinary Argentinians will be hit hard as the cost of borrowing skyrockets.