Argentina and holdout creditors failed to reach a debt deal, bringing the country closer to another default. Nathan Frandino reports.
Another default is looming over Argentina. The country failed to strike a deal with holdout creditors after two days of talks. Argentina's economy minister, Axel Kicillof: (SOUNDBITE) (Spanish) ARGENTINA ECONOMY MINISTER AXEL KICILLOF SAYING: "I want to say is that this offer, which is legal for Argentina and doesn't violate our contracts' clauses, was not accepted by the "vulture funds." This offer wasn't accepted because evidently they want more - and they want it now." Kicillof said Argentina offered the holdouts similar terms as other creditors who recently negotiated for new bonds with reduced payments. This would be the second default in more than 12 years for Argentina. The default would worsen an economy already in recession and weaken the currency. The creditors wanted full repayment on bonds they bought on the cheap after the country defaulted in 2002. Kicillof said Argentina will take all measures to face what he called an unfair situation.