- Title: ARGENTINA: Protests in Buenos Aires as Argentina stares down possible default
- Date: 25th July 2014
- Summary: BUENOS AIRES, ARGENTINA (JULY 24, 2014) (REUTERS) VARIOUS OF PROTESTERS FROM LEFTIST PARTIES MARCHING TOWARDS GOVERNMENT HEADQUARTERS PLACARD THAT READS "WHILE THE YANKEE VULTURES ROB US OVER DEBT, VULTURE EMPLOYERS WILL LEAVE FAMILIES OUT ON THE STREET" / PROTESTS ACTING OUT SCENE OF WORKERS BEING FIRED PLACARD THAT READS "ENOUGH OF THE ADJUSTMENT AND REPRESSION" (SOUNDBITE) (Spanish) DIRECTOR OF THE SOCIALIST WORKERS MOVEMENT, VILMA RIPOLL, SAYING: "We don't propose to go into default, we decided that it's a sovereign decision not to pay. We've paid the (International Monetary) Fund, we've paid the vulture funds, we've paid the ICSID (International Centre for Settlement of Investment Disputes), we pay the Paris Club and on top of this they will declare a default. This is why we decided not to pay." VARIOUS OF PROTESTERS OBELISK IN DOWNTOWN BUENOS AIRES VARIOUS OF EXCHANGE RATE FOR AMERICAN DOLLARS
- Embargoed: 9th August 2014 13:00
- Keywords:
- Location: Argentina
- Country: Argentina
- Topics: General,Economy,Politics
- Reuters ID: LVA9032OOLJE63MQO5ZSOHE5M2WE
- Story Text: Protesters marched on downtown Buenos Aires against holdout investors on Thursday (July 24) as Argentina faces a possible default for a second time in 12 years at the end of this month for its refusal to pay out holdout hedge funds in full.
Argentina President Cristina Fernandez announced last week that it was "impossible" to pay holdouts the full face value of the debt they hold. She called on the funds to enter a bond swap matching the terms of restructuring deals in 2005 and 2010, which saw creditors accept large writedowns.
The tough-talking Fernandez has pledged to keep paying the country's restructured debt but vows never to pay at face value the "vultures" that bought the bonds at a steep discount and are suing for full payment.
Leftist organizations planned a protest on the streets of Buenos Aires to show their support for the government's stance.
"We don't propose to go into default, we decided that it's a sovereign decision not to pay. We've paid the (International Monetary) Fund, we've paid the vulture funds, we've paid the ICSID (International Centre for Settlement of Investment Disputes), we pay the Paris Club and on top of this they will declare a default. This is why we decided not to pay," said Director of the Socialist Workers Movement, Vilma Ripoll.
Argentina's exclusion from global capital markets means an eventual default would be highly unlikely to send shockwaves through emerging markets worldwide.
But it would further weaken Argentina's peso currency, which has fallen 20 percent on the official rate so far this year, and fuel upside inflationary risks. - Copyright Holder: REUTERS
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