Filed at 12:04 p.m. ET
BUENOS AIRES, Argentina (Reuters) - Argentina confirmed on Thursday it would not fully meet an $809 million World Bank debt payment deadline on Thursday, heralding a likely multilateral debt default that will cut off one of its last avenues to aid.
"The country's level of reserves prevents it from paying the total of the quotas that expire today, because (the reserves) would be left below the $9 billion that the (International Monetary Fund) recommends to maintain the stability of the monetary Program," Cabinet Chief Alfredo Atanasof said in a statement.
"By paying the interest of the payments (due), Argentina aims to continue negotiating for a definitive deal with the IMF (and) avoid default," he added.
A government source had previously told Reuters of the payment to be missed, and that only around $80 million in interest would be paid.
Paying only the interest on the loan is not enough to avoid Argentina entering into default -- a move that relegates it to a club of debt deadbeats that includes Iraq and Zimbabwe.
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Carl
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