It is business as usual in Argentina according to the country’s government, despite technically defaulting for the second time in 12 years after last-minute talks with creditors failed to reach an agreement.
Speaking on Thursday, Argentinian President Cristina Fernandez de Kirchner said: “It’s July 31 and the world is still here as is the Republic of Argentina. We can all say that this is very good news. August is here now and we can live our lives as we have over the past number of years here in the Republic of Argentina.”
The default came after Argentina failed to reach a deal with a group of bond-holders who had not agreed to a restructuring of the country’s debt in 2005 and 2010.
The “hold-outs”, with the backing of a judge in the United States, have been demanding full payment.
Buenos Aires maintains it has not defaulted because it made a required interest payment on one of its bonds due in 2033.
“Those who want to talk about a default do it without knowing about the issues. They should show the contract and explain how it can be that we are in a default situation. It does not have a name, but if it did it would not be a default,” said Axel Kicillof, Argentina’s Economy Minister.
Argentina’s bond and stock markets as well as the country’s currency, the peso, experienced losses on Thursday.
A senior member of the Argentinian government has said Buenos Aires is looking at bringing what he called the “vulture funds” before the International Court of Justice and even the United Nations General Assembly.