Argentina blames US mediator for debt default

Argentina has blamed the US for its debt default, calling the mediator in failed talks "incompetent".

Cabinet Chief Jorge Capitanich said his country was considering opening proceedings at international tribunals in The Hague after it was declared to be in technical default.

The announcement came just hours after last-minute talks in New York with a group of bond-holders failed.

The bond-holders are demanding a full pay-out of $1.3bn (£766m).

Argentina says the bond-holders are "vultures" using the South American country's debt problems to make a big profit.

The investors are US hedge funds that bought debt cheaply after Argentina's economic crisis in 2001-2002.

They are also known as "hold-outs" because they did not sign up to a restructuring of debt which the majority of bond-holders agreed to in 2005 and 2010.

Under that deal, investors agreed to settle for about a third of what they were originally owed.

However, hedge funds NML and Aurelius Capital Management bought up a large chunk of the remaining distressed debt at low prices.

They demand to be paid the full face value of their holding.