Fear of default in Argentina

ARGENTINE markets stabilised yesterday as some investors gambled that the country would find ways to stave off a default, despite suffering a major defeat in the US Supreme Court where a small group of creditors won an order for full compensation from a 2001 default.

President Cristina Fernandez de Kirchner said yesterday: “What I cannot do… is submit the country to such extortion.”

The International Monetary Fund warned that Argentina has “limited capacity” to pay the $1.3bn it owes by the end of the month.

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