Argentina confirms default of World Bank debt

Debt-ridden Argentina confirmed it has defaulted on its US$726 million payment due to the World Bank. The default was prompted by fears that payment could reduce central bank reserves to zero over the next few months.

The government had earlier warned it would withhold multilateral loan repayments without an International Monetary Fund bailout. However, the missed payments disqualify the country from further World Bank loan disbursements.

"We do not like not paying our debts but we are in a qua