Default Looms for Argentina

Argentine Peso cc Flickr Diego Torres Silvestre

Argentina has until July 30 to avoid its second devastating default in just 13 years. Last month, the country was unable to make a June 30 payment to its creditors. It was then granted a 30-day grace period in which to make the payment or agree to a new schedule.

Argentina’s economic woes worsened considerably last month when the US Supreme Court ordered the country to pay holdout investors $1.5 billion along with its other creditors on June 30. The court also ordered that the holdout investors be paid before all others. This ruling is controversial in some corners, as it adds to the financial pressures weighing down on the Argentine government. Before the ruling was even announced, Argentina was already having difficulty paying its creditors.

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