Argentina News 2014: Argentines Not Yet Concerned About Effects of Default
Argentina defaulted on its debts last week, and a U.S. federal court prevented Argentina from making debt payments on restructured debts until paying off $1.5 billion to hedge funds. Still, life in the country is continuing as usual, according to Reuters.
The country is banned from international credit markets, which will effect the economy and the country's reserves, but there are no protesters in the streets rioting the state of affairs.
"It seems to be business as usual right now," Jose Bini, a 27-year-old Argentine entrepreneur said, adding that many of his friends already left the country to look for better prospects. "Argentines will get to feel the default, but not just yet."
Another Argentine told Reuters that she was unsure of how the news of the default would directly affect her.
"It creates a lot of uncertainty, but I don't know how it will impact me," said Silvina Ferreyra, 33, a saleswoman for an airline. "I have a secure job, but I don't know what will happen. It's difficult to invest in your life, for example buy a house, with so much uncertainty. But what can you do? Life goes on."
Despite last-minute talks in New York on Wednesday, the mediator was unable to find a fix and avoid a default.
The Argentine government called the hedge funds seeking full payment "vultures" because they swooped into buy the bonds at low costs after the first crisis in 2001, according to BBC.
"We are used to living like riding a roller coaster. I have lived through two defaults, hyperinflation, an economic crash, stagflation -- and I'm only 27," Bini said.
Many of the country's residents are optimistic that a solution will be reached soon, despite worrying about increased inflation and more people going hungry.
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