Will US court’s Argentina verdict impact Turkey?
Argentina's recently declared bankruptcy may set a risky precedent for high-debt countries like Turkey.
At the end of July, Argentinian Economy Minister Axel Kicillof appeared on TV in New York and declared bankruptcy for his country, sending US markets into turmoil.
How did this unexpected bankruptcy come about? In 2001, when Argentina could not pay its debts, it borrowed heavily from US hedge funds to cope with the crisis. Now, it couldn’t repay on time its $1.33 billion debt in bonds and called for a rescheduling of its payments.
