First it was Austria declaring it never guaranteed the debt, and then France announcing 60% of their debt is illegal, and now Argentina cannot repay its debt.
Do we see a trend here?
Will bank accounts & pension funds get raided by the now legal Bail-In policy, to save the bond holders?
Uncertainty about the government’s strategy pushed Argentine stocks down about 3.5 percent in Thursday trading.
The 2nd U.S. Circuit Court of Appeals ruled on Wednesday that Argentina can’t continue to pay creditors who agreed to restructure their bonds after its 2001-02 default on $100 billion in debt unless it also pays $1.33 billion to the holdouts demanding full payment.
President Cristina Fernandez’s leftist government has until now refused to pay the holdouts and says the court rulings make it impossible to meet the next payment to holders of restructured debt…