Isda declares credit event on Argentina CDS

Fri Aug 1, 2014 12:02pm EDT

NEW YORK, Aug 1 (IFR) - The International Swaps and Derivatives Association (ISDA) on Friday effectively declared Argentina in default, setting in motion a process that could trigger payments worth up to USD1bn on credit default swaps.

ISDA's 15-member determinations committee decided that a "failure to pay" event has occurred on the contracts on July 30, the day Argentina missed a coupon payment on some of its restructured foreign-law bonds.

The deliberation, which needed an 80% majority to go through, was prompted by a request submitted on Thursday by Swiss bank UBS. (Reporting by Davide Scigliuzzo; Editing by Marc Carnegie)