Economy Minister Axel Kicillof has returned to the negotiating table in a last-ditch attempt to prevent Argentina defaulting on its bonds.
Axel Kicillof’s talks with “hold-out” investors ended late on Tuesday night in New York without agreement.
They are demanding a full pay-out of $1.3 billion on the bonds they hold.
A US judge has ruled that the “hold-outs” must be paid by Wednesday night if no deal is agreed.
The government’s rhetoric has been clear.
The “hold-outs” are US hedge funds that bought debt on the cheap during Argentina’s darkest hours and never agreed to restructuring.
President Cristina Fernandez de Kirchner calls them vultures, accusing them of taking advantage of Argentina’s debt problems to make a big profit.
What makes the problem worse is that if the “hold-outs” get their way, other bondholders who agreed to take cuts of up to 70% in what they are owed may also demand full repayment.
Despite the defiant tone of the government, many people seem resigned. Argentina has defaulted before and most probably will do it again.