How to buy a country, lend them money you know they can't pay, then demand ownership of their country. It's interesting that the fund is based in a tax haven. THEY have learned the art of not paying. Anyhow, as stated, it is a big subject, so i have copied some quotes from the comments section. At least some of the people there seem to be fairly knowledgeable.
Actually Argentina pays its debts. A debt restructuring means just that payments are rescheduled for longer periods at lower rates according to capacity to pay. Also, given the initial conditions of these loans Argentina has payed several times the original amounts. That is why financial markets always return to defaulting countries. Interest rates are so high, that even if you hold the bond at the time of default, which most lenders avoid doing, but set aside the interest payments, you make money lending to developing countries. Soverign lending is good business for banks, not for developing countries for a reason.
Response to Mkubwa, 3 December 2012 2:47PM
Also, austerity is about spending in domestic currency, while foreign debt is in dollars. In other words, what limits your ability to pay is exports, or more precisely your current account situation, not your fiscal position. The problem with Argentina was an overvalued exchange rate, and the liberalization policies that had eroded export revenue. Austerity did nothing to help.
There is an onus on a lender to lend to the right people, and there is an associated risk that if they lend stupidly, they won't get the money back - and that risk is a natural and good part of capitalism.
It was not their loan, they bought the bad debt cheaply with the idea of attempting to gain full payment through the courts.
It is true that a lot of people here are struggling here, but that does not contradict the basic point made by this article that in many ways Argentina in the last nine years has been a success story.
When you take into account the fact that the economy collapsed in 2001, the current situation in which, yes, a lot of people are still struggling and a lot of people are still very poor, in only to be expected. No one has claimed that there has been a miracle, only that things are improving.
There's a still a lot of work to be done. The country's infrastructure was basically neglected for nearly fifty years after the so-called "Revolucion libertadora" (the military coup of 1955) and the current government is really the first one in all that time to try to address these problems.
The other thing to bear mind is what might have happened if the country had followed the advice of the IMF and imposed austerity. People were already dying of hunger in some parts of the country in 2001; IMF-style austerity would only have made this grave situation worse.
Did you make it this far? There are a lot more comments over there. It's a good place to start in understanding the situation.