Argentina enters technical default

|By:, SA News Editor

Argentina will enter a state of technical default today, as the $832M payment given to holders of the country’s restructured bonds was declared illegal on Friday. The showdown continues as the New York judge presiding over the case insists that holdout creditors must be paid $1.5B before any other payments can be made.

Although this marks the second time in 15 years the country has entered technical default, Argentina will still have a 30-day grace period until it enters formal default. Negotiations will likely take place for the greater part of the month, to help prevent the country from being barred access to international markets.