Indeed, as Guillermo says, Argentina has not declared a default. Furthermore, on June 26 Argentina transfered the funds to the Bank of New York Mellon to make the scheduled payment on June 30. However, Judge Griesa ordered the bank not to pay the bond holders, which is why bond holders haven´t been paid. So, this would be the first case of a sovereign failure to meet a scheduled debt service payment which is not the result of the sovereign´s inability to pay. Or, it is the first judge-induced non-payment.
The financial sector (S&P, the Bank of New York, ISDA, etc.) have or will declare Argentina in default, and the consequences will likely be the same as an actual default. However, this is a default forced on Argentina and not its choice.
If nothing else, it points to the profound insanity of a world ruled by Wall Street speculators and vultures.
Coordinador Área de Economía Política
Instituto de Industria
Universidad Nacional de General Sarmiento
Buenos Aires, Argentina
(+54-11) 4469-7500, int/ext: 7282