Back
31 Jul 2014
S&P: Argentina cut to selective default
FXStreet (Bali) - Argentina's Economy Minister Axel Kicillof is giving a press conference live, updating on the latest talks with holdout creditors, which follows a cut to Selective Default by S&P agency.
S&P published a note saying that on June 30, "Argentina failed to make a USD$539 million interest payment on its discount bonds maturing in December 2033", leading the agency "to remove the ‘CCC-/C’ foreign currency ratings from creditwatch on Argentina, with outlook on the ratings on Argentina negative."
According to Kicillof, "hedge funds are not willing to give delay on ruling", adding that "Argentina can’t comply with court ruling", also noting that "debt talks should include all holdouts, not just hedge funds." Kicillof added Argentina cannot sign any deal under extortion.
Kicillof said that they presented an offer with same terms as previous debt swaps, however, holdouts didn’t accept it. According to market sources, the total claims from holdouts mounts $15bn-$20bn.
S&P published a note saying that on June 30, "Argentina failed to make a USD$539 million interest payment on its discount bonds maturing in December 2033", leading the agency "to remove the ‘CCC-/C’ foreign currency ratings from creditwatch on Argentina, with outlook on the ratings on Argentina negative."
According to Kicillof, "hedge funds are not willing to give delay on ruling", adding that "Argentina can’t comply with court ruling", also noting that "debt talks should include all holdouts, not just hedge funds." Kicillof added Argentina cannot sign any deal under extortion.
Kicillof said that they presented an offer with same terms as previous debt swaps, however, holdouts didn’t accept it. According to market sources, the total claims from holdouts mounts $15bn-$20bn.