Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Business
Classified Sites

The Canadian Press - ONLINE EDITION

Argentina economy minister says the government has processed payment on its restructured bonds

Argentine Economic Minister Axel Kicillof speaks during a news conference at United Nations headquarters, Wednesday, June 25, 2014. The winners of a decade-long debt battle asked a U.S. judge on Tuesday to deny Argentina's request for more negotiating time to avoid a catastrophic default. (AP Photo/John Minchillo)

Enlarge Image

Argentine Economic Minister Axel Kicillof speaks during a news conference at United Nations headquarters, Wednesday, June 25, 2014. The winners of a decade-long debt battle asked a U.S. judge on Tuesday to deny Argentina's request for more negotiating time to avoid a catastrophic default. (AP Photo/John Minchillo)

BUENOS AIRES, Argentina - Argentina's government said on Thursday that it has begun to process the next payment it owes on its restructured bonds.

Economy Minister Axel Kicillof said that Argentina has taken steps to pay $832 million owed by Monday to creditors who participated in debt swaps in 2005 and 2010.

A U.S. court is ordering Argentina to pay some $1.5 billion to a group of creditors who refused Argentina's debt swaps after the country went into default in 2001. If Argentina does not pay the plaintiffs, the ruling bars from using the U.S. financial system to pay other bondholders.

"Not paying while having the resources and forcing a voluntary default is something that is not contemplated in Argentine law," Kicillof said.

"It would be a clear violation of the debt prospects."

Argentina's next installment to the majority of its creditors is due June 30, though the government has a 30-day grace period thereafter to avoid going into a catastrophic default.

The winners of the more than decade-long debt battle asked a U.S. judge on Tuesday to deny Argentina's request for more negotiating time to avoid a default. The plaintiffs said Argentina must first show it's serious about paying the judgment and that Argentina will only try to evade the court's orders if it's given more time.

Kicillof has said that enforcing the deadline could provoke a disorderly default, sinking the nation's economy and potentially causing financial havoc around the globe.

President Cristina Fernandez has said that she wants the judge's support for a process that would enable her government to resolve 100 per cent of Argentina's debts — including holders of the last 7 per cent of bonds that went into default in 2001 and are held by investors who weren't part of the winning case.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
The First World War at 100
Why Not Minot?
Welcome to Winnipeg

Social Media

Canadian Mortgage Rates