Argentina: Debt and default
Is Argentina about to go bust? The Latin American giant has been struggling with inflation, and a trade imbalance, but most of all, the ruling of a New York judge, who says it has to pay creditors from an earlier default in full. An appeal court decision is due in the US later this month.
We hear from Alan Cibils, Professor of Political Economy at General Sarmiento National University in Buenos Aires, on what Argentina is likely to do in response and from the country's former central bank governor, Mario Blejer, who says that forcing countries to honour past debts could have serious implications for other economies, like those in the eurozone, who may have to default in the future.