Time almost up for Argentina to avoid debt default

Argentina faced a race against on time on Wednesday to avert its second default in 12 years, needing to either cut a deal by the end of the day with "holdout" investors suing it or win more time from a U.S. court to reach a settlement. Argentine Economy Minister Axel Kicillof scrambled to New York on Tuesday to join last-ditch negotiations, holding the first face-to-face talks with the principals of New York hedge funds who demand full repayment on bonds they bought at a discounted rate after the country defaulted in 2002. The hedge funds are owed $1.33 billion, but an equal treatment clause in an agreement Argentina made with bondholders in 2005 would cost Argentina many billions more. Kicillof emerged from talks late on Tuesday saying only that they would resume on Wednesday, but mediator Daniel Pollack said issues dividing the parties "remain unresolved" and it was still undecided whether the sides would meet on Wednesday.

via Business News http://ift.tt/1ztBAQ8