Argentina debt negotiations with holdout creditors remain deadlocked as default looms

Associated Press

Argentina's negotiations with creditors to resolve a dispute over $1.5 billion in unpaid debts remained deadlocked.

Argentina will default for the second time in 13 years if it's unable to reach a deal with the U.S. hedge funds before July 30.

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The debt mediator in the dispute met with Argentine officials Friday. But Daniel Pollack says that progress has not been reached.

Pollack also said the Argentine mission is returning to Buenos Aires Friday night, but he expects more talks before the deadline.

Following a U.S. judge's order, Argentina can't pay investors who accepted lower-valued bonds after its record $100 billion default in 2001 unless it also pays off bondholders who didn't participate in previous bond swaps.

The holdouts accuse Argentina of refusing to negotiate to avert the default.