In the end, nothing helped: Negotiations between Argentina and its creditors have failed – the government in Buenos Aires is broke. For the people in the land of bankruptcy has dramatic consequences.

The last hours of the trickled reprieve talentless. And in New York, the city that never sleeps otherwise. At the stroke of midnight (6 clock CEST) local time, it was then so far: Argentina is insolvent – for the second time since 2001.

As its critics “vulture funds” – – After almost 13 years of negotiations, lawsuits and threats, a group tough U.S. hedge fund South America’s third largest economy to its knees: $ 1.5 billion it had requested, the full bond debt agreed in the period before Argentina’s last national bankruptcy in 2001 – and more than Buenos Aires wanted to pay.

Now everything should be but much more expensive for Argentina – President Cristina Kirchner and his who wanted to feed up the economy before the next elections in 2015.

Now their government is about to end, there is a threat of inflation, currency weakness, unrest.

“Weak and getting weaker,” so named Roberto siphon-Arevalo, Latin America expert at the rating agency S & P, the economic situation of Argentina in the “Wall Street Journal”. “This situation does not help for sure.” S & P upgraded Argentina’s credit rating promptly to “SD” down, the penultimate step on the scale. Argentine stocks plunged off in after-hours trading.

Argentina is bankrupt :The minister railed against the “vultures”

Had helped, in fact, nothing more. Twelve hours they negotiated on Monday, the first time ever, face to face. Then again six hours on Tuesday. Wall Street lawyer Dan Pollack, the court-appointed intermediary, opened again to his office suite on the 27th floor of a skyscraper on Park Avenue in New York and served to strengthen coffee and cold drinks.

Maybe it was an omen that used to be the bankrupt bank Bear Stearns was in the same house. Anyway stormed the Argentine delegation, led by Finance Minister Axel Kicillof, in the evening by the reporter trellis empty-handed into the open. “We will not sign an agreement that would compromise the future of Argentina,” insisted Kicillof, hoarse and exhausted, later in the Argentine Consulate in Midtown Manhattan. Again and again he lashed out at his opponents – the “vultures”.

“Unfortunately, no agreement was reached,” regretted Pollack – and stressed the bitter seriousness of the matter: “Insolvency is not a purely ‘technical’ state, but a real and painful event that will hurt real people.” And not just the creditors and fund – which now go empty – but also “all normal Argentine citizens”. The full consequences of a default are unpredictable, so Pollack, “but they are certainly not positive.”…

Argentina is bankrupt:Sought percent return in 1680

The quarrel dragged on for years. At the top of the objectors was the U.S. hedge fund Elliott group that filed claims alone to $ 1.3 billion – a profit of 1,680 per cent on their original investment. While other creditors had waived the debt restructuring in 2002 to 70 percent of their deposits, they refused and insisted on 100 per cent payout.

For the company of the Republican patron Paul Singer, which manages nearly $ 25 billion, which is just a no brainer. Nevertheless Singer resorted to brutal means – including the seizure of embassies and the seizure of the Argentine sail training vessel “Libertad”.

Finally thundered U.S. District Judge Thomas Griesa Argentina in 2012 to fully pay “vulture funds”. By then, the other creditors are likely to get nothing. The U.S. Supreme Court let the ruling made ​​in June. In order passed on Wednesday an installment payment of $ 539 million to the $ 29 billion that Argentina the other funds owed ​​- automatic trigger for the S & P devaluation.

Argentina’s argument was: Does it pay the “vultures” from these other creditors may suddenly insist on 100 percent.
At the end there was still one last hope. A group of Argentine banks offered a guarantee fund of 250 million dollars on a later payment to: would you take the blame. The fund declined. “Everything collapsed,” it said of the negotiations,.

In Argentina, it took at least some left. “We live with this shadow of the crisis,” said the mother of two Carina Etchegaray the BBC. “You have to adapt – in this country that’s just the way of life.”

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