The Argentine government and the Fund are close to a state of open warfare: as the IMF continues to insist that any rescue package for the country depends on commitment to urgent reform, the Argentine finance minister on September 24th threatened to default on the country's debt to the Fund.
Yet if leaving the euro is unthinkable, the risk of default by a country that stays in has clearly gone up.
If not, he said his banks will go belly up and the country will default on its debts.
The prospect that a euro-zone country might default on its loans, never mind leave the euro, is fairly remote.
The vice president said that is a hopeful sign that the GOP would not allow the country to default on its debts.
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For example, believing that driving the country into default on its debt is good for all may be false, but it is not delusional.
Without it, he will say, the country faces default and catastrophe.
And Neil Mackinnon, chief economist at VTB Capital, said the future for Greece is far from clear, adding that it was "now probable" that the country would default.
In short, the default policy in the country was openness.
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It is now clear that President Barack Obama is prepared to put the country into default, hold up Social Security checks and blame it all on the Republicans.
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Stressing the need to learn lessons from the crisis, she wants a treaty change to allow sanctions to come into force should a eurozone country ever default on its debts.
Repeat the exercise for a large group of publicly traded corporations and you can get an overall default rating for a country's private sector or for one segment of the economy.
Congress must agree to raise the limit on how much debt the U.S. can have by the end of February otherwise the country risks default and could be slapped with damaging credit downgrades.
Congress, prior to that, while raising the debt ceiling had been a matter of debate, had always done its job, had never in the history of this country threatened default on our credit.
The resurgence in national prosperity, helped by booming global demand for agricultural commodities, has occurred despite the fact that rancorous disputes over the default have kept the country shut out of international capital markets.
Ecuador recently became the first country to default on its Brady bonds, which were created in the late 1980s to allow developing countries to repackage bad bank loans into new bonds backed by U.S. Treasury securities.
In contrast, the portion accruing to corporate profits was the biggest since 1950, showing companies are hoarding cash as concern grows that a European country will default on its debt and that deficit-reduction gridlock in Washington will continue, Bloomberg reported on Friday.
Having said that, I will only refer you to the comments I just made about how serious the prospect of default is for this country, for the United States of America, the most powerful and important economy on the globe, and a place that investors around the world look to as a safe harbor because we pay our bills.
Brazil's banks are much stronger than Argentina's were before that country's default in December 2001 and its resulting banking collapse.
But as we have seen recently, just the potential for a default by even a small country creates panic in markets.
If they send me a budget bill that says simply, "take our cuts or we'll let the country go into default, " I will still veto it.
Against this tumultuous backdrop, Haarde vowed Tuesday that ordinary Icelanders would not pay the price for this spending spree and that his country will not default on its debt.
Sources close to the matter also raised doubst that a judgment against Argentina, which could push the country into technical default, would render debt restructurings useless by incentivizing creditors to hold out.
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Just how much so readers will learn from Martin Gilman's account of Russia's fitful, often stumbling economic reforms in the short decade between the collapse of the Soviet Union and the country's default on its domestic debt in 1998.
It will prevent a country going into default as a result of a natural disaster and will reinforce its standing in the eyes of lenders and rating agencies (important if it has to borrow to cope with the disaster).
The size of that devaluation would be the extent of the country's effective default against its creditors.
The price of insuring Argentine bonds against default has spiked, but the country was already shut out of debt markets.
The Greek situation has already shown that an orderly default can take place while a country remains a member of the euro.
It could be an ingenious way of helping Greece escape its cycle of decline, or of throwing more money at a country that needs to default and start again.
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