At the close of New York City banking hours on 30 July Argentina slipped back into a formal default on its foreign debt for the second time in over 12 years, as it failed to make US$539m in overdue payments to the bulk of its bondholders. The payments were blocked by order of New York judge Thomas Griesa who has ruled that Argentina cannot pay its bondholders unless it also pays US$1.33bn plus interest to a group of ‘holdout’ creditors led by hedge fund, NML Capital. Despite last minute negotiations by Argentina’s economy minister, Axel Kicillof, and an offer to help from the association of Argentine private banks (Adeba), no deal was reached between Argentina and the holdouts. So what are the political consequences?End of preview - This article contains approximately 994 words.
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