Argentina teetered on the brink of its second debt default in 13 years after talks with bondholders collapsed late Wednesday, Wall Street Journal reported.
At a news conference after talks with a court-appointed mediator ended Wednesday, Argentine Economy Minister Axel Kicillof was quoted as saying that the government “won’t sign an agreement that would compromise Argentina’s future.”
A spokeswoman later said negotiations would continue, without giving a timetable.
Argentina has been locked in a long battle with a small group of hedge funds that have demanded full payment for bonds the country defaulted on previously in 2001.
Buenos Aires has refused to pay, despite an order by a US District Court judge requiring it to pay the hedge funds. The issue came to a head Wednesday as Argentina missed a deadline to make a payment it owed to other bondholders, because the court order had prevented such a move.
A default would pressure an economy already mired in recession, potentially leading to higher inflation and a weaker currency, the Journal noted.
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