First the World Cup loss, now this: Argentina has defaulted for the second time in 13 years—but apparently through no fault of its own. Standard & Poor's considered the country in default yesterday after it failed to make interest payments to its bondholders and CNN reports that may mean "painful consequences," including a spike in borrowing costs. But as the BBC notes, Argentina is blaming the US, with the country's Cabinet chief noting "the responsibility lies with a state, that of the United States of America" thanks to its "shameful" handling of talks with US bondholders—or as Argentina called them, "vultures"—in New York.
The "holdout" creditors want a full payout of $1.3 billion but "we're not going to sign an agreement that jeopardizes the future of all Argentines," economy minister Axel Kicillof told the AP, noting that the nation's own proposal was rejected. But as the midnight deadline approached with no sign of a deal, he didn't seem too bothered. "Argentines can remain calm because tomorrow will just be another day and the world will keep on spinning," he said. Meanwhile, the Cabinet chief, who also decried an "incompetent" mediator, says he will denounce the "vulture funds" before The Hague as well as the UN General Assembly. (Read more Standard & Poor's stories.)