It is now the second time Argentine has defaulted on its debt, this will be the second time in 13 years. It was hoped that discussions being held in New Your with a group of bond holders would be successful however it has ended in failure.
The bond holders we requesting a full pay-out of the $1.3 billion on the bonds they hold. Argentina stated they ant afford to purchase the bonds back and suggested the bond holders were using the debt crisis to cash in and make a profit out of them.
The last time Argentina defaulted was in 2001, a US judge has given a deadline of 04.00 GMT for a deal to be agreed. The Argentine Minister has said that the Bond Holders rejected their latest offer.
The latest default is not expected to have the same effect on the economy as it did in 2001. In the 2001 default many people were protesting and dozens were killed, authorities froze many savers accounts in order to stop a run on the banks.