Argentina ruled in 'selective default' on bonds – S&P

It was the second time the country has been ruled in default in 13 years, and came after marathon negotiations with hedge fund creditors in New York failed to reach a deal by the time the payment was due.

 

Argentina had deposited the sum -- for payment bond holders who had accepted a restructuring deal -- in a bank account when it was due at the end of June.

 

But a New York judge blocked the bank from forwarding the payment to the restructured creditors unless it also paid two US hedge funds the full value of their bonds, $1.3 billion, at the same time.

 

Argentina and these funds, which Buenos Aires has branded "vultures," have spent the last two days locked in talks with a New York court-appointed mediator to try a set a deal on payments before the expiration of a 30-day grace period.

 

But there was no sign of a deal late Wednesday.  — Agence France-Presse