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Argentina's Economy Minister Axel Kicillof is warning the U.N. that his country is on the brink. He says Argentina is being ...
pushed toward a new default after a U.S. Supreme Court decision favored holdout creditors seeking payment on bonds it defaulted on in 2001-2002.
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Argentina's Economy Minister Axel Kicillof is warning the U.N. that his country is on the brink. He says Argentina is being pushed toward a new default after a U.S. Supreme Court decision favored holdout creditors seeking payment on bonds it defaulted on in 2001-2002. (SOUNDBITE) (Spanish) AXEL KICILLOF, ECONOMY MINISTER, ARGENTINA, SAYING: "Probably this is going to push us into a technical default. Whatever way you look at it, this ruling is forcing Argentina towards the risk of economic crisis. It's pushing out people into the situation of a debt that was the double we had in 2001." Argentine officials have said the country will not pay these investors, arguing it could face potential demands for up to $15 billion from others not involved with the case - an amount representing more than half of the government's $28.5 billion in foreign currency reserves. (SOUNDBITE) (Spanish) AXEL KICILLOF, ECONOMY MINISTER, ARGENTINA, SAYING: "Argentina paid, wants to continue paying under reasonable conditions, under feasible conditions but we're facing a situation where we're not being allowed to do that. Just one percent are endangering the agreement that was agreed upon by all the other bondholders. Thank you." Despite the tough public stance, markets believe the parties will eventually negotiate a solution.