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Violent worker protests in Buenos Aires as Argentina stares second debt default in the face

Violent worker protests in Buenos Aires as Argentina stares second debt default in the face
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A protest by Argentine car workers quickly deteriorated into violence on the Panamericana highway leading into Buenos Aires as angry pickets confronted police.

The auto part company Lear has announced mass redundancies blaming them on the current recession.

Unions say its the fault of the government pandering to American companies in unpopular debt negotiations.

Union Secretary Laura Yampo:

“This is happening because President Christina Fernandez’s government is doing business and negotiating with imperialists to pay the fraudulent external debt and for this reason it has to maintain good relations with the American company owners.”

The government has until July 30 to reach an agreement with hedge funds suing for full repayment of sovereign bonds which the country defaulted on in 2002.

It has been holding out but the American Supreme Court where the case was heard ruled in favour of the hedge fund holders.

Argentina says payment will send it into its second default in 13 years.

Background: Argentina defaulted on $93 billion of its debt in 2002. Two funds acquired some of that debt and have been pushing via the US courts for full repayment, unlike other creditors who agreed to discounts on what they were owed.

In June the US Supreme Court’s ruling in favour of the funds also said Argentina cannot pay its other creditors if it doesn’t pay the funds first.

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