bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 25.05.2016 | Name days: Junora, Anšlavs

Argentina defaults on debt for second time in 12 years

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUArgentina for the second time in the last 12 years is unable to pay its dept. The situation might deepen the recession of Latin America’s third largest economy and fuel its inflation.

After a long legal battle with U.S. hedge funds that rejected Argentina’s debt restructuring following its 2002 default, Argentina failed to reach a deal in time to meet a deadline for a coupon payment on exchange bonds.

In June 2013, a U.S. Supreme Court judge ruled that Argentina was liable to pay the investment funds the 967 million euros they were demanding and blocked payments to the restructured bond holders unless it also paid this sum.

Reuters evaluates that even a short default will raise Argentinean companies’ borrowing costs, increase pressure on the peso, drain foreign reserves and fuel one of the world’s highest inflation rates. Inflation in Argentina in June was at 21.5%.

The consequences of this second default may be a worsening of an economy already in recession and a weakening currency as more Argentines seek to hold dollars.

Ref: 111.111.111.1370


Leave a reply

  1. mike walsh says:

    Deliberately so I hasten to add. What the government of Argentina has done is follow the example of other nations caught up in the never-ending cycle of Wall Street usury. They have told Wall Street to go and jump for their money. Well done, Argentina.

    Iceland President Ólafur Ragnar Grímsson says, the government (Iceland) bailed out the people and imprisoned the bankers, the opposite of what America and the rest of Europe did.”

    Thumb up 0 Thumb down 0

    • Linda says:

      Quite. We should all stop investing in each other’s countries and keep our monies within our own borders. I wonder what the foreign influx would do. I’d charge tax on movement of monies out of own country borders.

      Thumb up 0 Thumb down 0

      • Foreigner says:

        Yes, a brilliant idea to keep money in its own country. I thought you were happy that Soviet had gone?

        Thumb up 0 Thumb down 0

15,000 Lithuanians call for ban on electricity from Belarus’ nuclear plant

In Lithuania more than 15,000 people have signed a petition for a law that would ban buying energy from the Astravyets nuclear plant being built near the Belarus border with Lithuania.

Poland hopes Latvia’s records will help investigates the Smolensk plane crash

Records of Latvian authorities and satellite images provided by NASA could help Poland investigate the 2010 Smolensk plane crash, in which Polish President Lech Kaczynski and a number of Polish high-rank officials were killed, as reported by Polish Radio.

Eurozone’s growth recovers; perspectives are good in Baltic States as well

Although global economic growth is expected to experience symptoms of anaemia, Eurozone’s GDP growth rate could reach 1.7% in 2016 and 1.8% in 2017. Perspectives for Latvia, Lithuania and Estonia are relatively good – growth will be dictated by private consumption and wage rise.

EUR 74.11 million to be allocated to improve infrastructure of large ports

In order to help develop the mobility of Europe’s transport network and shipping safety in Latvia’s large ports, the European Cohesion Fund will allocate EUR 74.11 million as part of the 2014-2020 planning period. This is provided by Latvian Transport ministry’s developed draft that was approved by the government on 24 May.

The number of tourists from EU countries keeps increasing in Latvia

In Q1 2016 more than 366.0 thousand visitors stayed in Latvian accommodation establishments, which is 1.6 % more than in the corresponding period of the previous year. As compared to Q1 2015, the number of foreign visitors grew by 2.5 %, and the number of nights spent increased by 7.6 %.

SA: Riga Freeport’s self-righteousness costs hundreds of thousands of euros

Since 2009, when the Competition Council first made its decision on breaches of competition rules – abuse of dominant position in organization of work of tugs within territories of Riga Freeport – expenditures of the port’s administration have exceeded EUR 1 million.

Rõivas: NATO decisions in Warsaw should be permanent steps

Addressing a public discussion in Tallinn on Estonia’s hopes for NATO summit in Warsaw, Estonian Prime Minister Taavi Rõivas has evaluated that it will be the most successful summit for the country since it was invited to join the military alliance in 2002.

Pabriks: the new leader should clean up Unity’s closet

Unity’s strength only remains in its name, not its core. Internal disputes and fractured state have created a crisis for the party’s political identity that threatens the party’s very existence, believes MEP Artis Pabriks.

Music streaming services offer family packages

In response to the pricing policy of music streaming service Apple Music, its Swedish rival Spotify has also launched a family pricing seeking to attract a new user base just before the holiday season.

Aboltina doesn’t try to deny news about her political meeting with Lembergs in Dubai

Current chairperson of the board of Unity and head of Latvian Saeima’s National Security Committee Solvita Aboltina only denies information about her allegedly drinking wine with Aivars Lembergs in Dubai. She does not deny the fact of meeting with the criminally accused politician in such an exotic part of the world.

PA: there are risks of losing part of the money invested in KVV Liepājas metalurgs

Privatization Agency has received the restructuring plan from the owners of KVV Liepājas metalurgs. The plan is unacceptable, however, because it includes a request for state support, which also has to be approved by the European Commission, as reported by the agency’s manager Vladimir Loginov.

Greece starts dismantling Idomeni migrant camp

Greek authorities on May 24 began dismantling the country’s largest irregular migrant camp of Idomeni, near border with Macedonia.

Minister: it’s in Europe’s interest to support security of its Eastern neighbours

«Enhancement of the European Union and its member states’ security should be made the most important strategy in foreign and security policy. More political attention and more resources should be allocated to Europe’s security. It is also important to improve the capabilities of the European Union and NATO to prevent hybrid war threats,» – believes Latvian Foreign Affairs Minister Edgars Rinkevics.

Three minors arrested for stealing private data of more than 1,000 draugiem.lv users

Latvian State Police Economic Crimes Prevention Department received information in February regarding potentially illegal actions with draugiem.lv social network users’ personal data. During the investigation, ENAP officers in cooperation with CERT.LV IT identified the individuals who had illegally acquired portal users’ virtual identities.

Austrian presidential election ends with unity call

In Austrian presidential election held on May 22, independent candidate Alexander Van der Bellen has narrowly won right-wing eurosceptic Norbert Hofer.

Ryanair announces 7% fall in fare prices

Ryanair has stated it would reduce its fare prices by an average of 7% in 2016, as the Irish airline seeks to increase its market share and increase competition in the European market.

Latvia will experience summer-like weather this week

High atmospheric pressure will dictate weather in Latvia this week. With that, air temperature will largely range within +21° C…+26° C on Monday, 23 May. It will be slightly colder along the coast.

Feierābends and Plētiens are released from detention

On Monday, 23 May, Riga City Northern District Court released Arvils Feierābends, who is a suspect in a bribery case of SP Public Order Police, from detention in the courtroom.

Producer price level in industry declines 3.1% in Latvia

Compared to March, the level of producer prices in the Latvian industry decreased by 0.1 % in April 2016. The level of prices of both – products sold on the domestic market, as well as of exported products decreased by 0.1 %.

Zatlers sees no reason to change Latvia’s naturalization rules

Latvia has very well-ordered laws and sufficiently simple naturalization process for non-citizens at the moment. There is no reason to change anything, believes ex-President of Latvia Valdis Zatlers.

Ministers to look for solutions to improve PUC’s budget situation

On Monday, 23 May, the Cabinet of Ministers did not support Economy Ministry’s guideline project that provides an increase of state fees for regulation of public utilities. Ministers will look for solutions to increase the Public Utilities Commission in the near future.

Immigration to Estonia exceeds emigration for first time since renewed independence

During 2015, 13 003 people emigrated from Estonia, while 15 413 imigrated to the Baltic country, Statistics Estonia has estimated and found that for the first time since the restoration of the independence of Estonia more people have arrived in the country than the people, who have left.

Baltic residents choose their most favourite brands

Swedbank, Laima and Apple remain the most popular brands in Latvia for the second consecutive year. The TOP 10 also include LMT, Facebook, Maxima, Samsung, Google, Bite and Rimi.

Latvijas Dzelzceļš buys plant the business of which has not been successful in the past

The head of Latvijas Dzelzceļš has received the government’s approval to expand its business presence. LDz’s subsidiary LDz Rolling Stock Service plans to become the sole owner of Rīgas vagonbūves uzņēmums Baltija and commence manufacture of freight wagons in Daugavpils.

Calendar of cultural events in Lithuania. Folkfest «Skamba Skamba Kankliai»

BNN offers you a selection of cultural events in Lithuania for the week during May 23 to May 29.