BUENOS AIRES (AFP) ― Argentina blamed the United States Thursday for the legal battle that forced it to miss a debt payment and ― despite ratings agencies’ declarations to the contrary ― denied being in default.
Ratings agency Fitch declared Argentina in “restrictive default” one day after 11th-hour talks failed to resolve the country’s dispute with two U.S. hedge funds that refuse to accept a write-down on their Argentine bonds.
Fitch’s label echoed the “selective default” declared by Standard & Poor’s. Both terms indicate that Argentina has defaulted on one or more of its financial commitments but continues to meet others.
U.S. District Judge Thomas Griesa has blocked Argentina from paying creditors who agreed to take write-downs on their bonds without also paying two hedge funds that took it to court demanding the full $1.3 billion it owes them.
Argentine stocks plummeted Thursday, closing 8.43 percent down, as the repercussions of the default began to set in.
President Cristina Kirchner was due to give a nationally televised address.
koreaherald@heraldcorp.com
