UPDATE 5-Argentine markets fall post-default, NY hearing on Friday

jueves 31 de julio de 2014 21:50 GYT

* Argentine dollar Par bond falls 7.6 pct

* Unclear if credit default swaps will be triggered

* Latest debt crisis in sharp contrast to 2001-2002 crash (Adds Argentine president comments in third paragraph, trims)

By Sarah Marsh and Richard Lough

BUENOS AIRES, July 31 (Reuters) - Argentina's bond and stock markets and peso currency dropped on Thursday after Latin America's No. 3 economy defaulted for the second time in 12 years following the collapse of last-ditch talks with holdout creditors.

The default came after Argentina failed to strike a deal with lead holdout investors NML Capital Ltd, an affiliate of Elliott Management Corp and Aurelius Capital Management, in time for a midnight Wednesday EDT (0400 GMT) payment deadline.

"Those who expect us to sign any old thing, threatening us that the world will come to an end otherwise, should not count on me," Argentine President Cristina Fernandez said in her first comments since the default.

The government maintains it has not defaulted because it made a required interest payment on one of its bonds due 2033, but U.S. District Judge Thomas Griesa in Manhattan blocked that deposit in June, saying it violated his ruling.

At that time, Griesa deemed the $539 million deposit with the Bank of New York Mellon, Argentina's trustee bank, was illegal because it did not include a concurrent court-ordered payment of $1.33 billion plus accrued interest to the holdout investors.   Continuación...