For the third time in 25 years, Argentina defaulted on its debt. In July 2014, Standard & Poor's declared that the country was in default on some of its obligations after the government failed on an agreement with a group of bondholders. The creditors demanded payment of approximately 1.5 billion for bonds that they purchased after Argentina's $144 billion default in 2001.
The default could trigger an even bigger hike in inflation and cause the value of the peso to continue to fall. Economists have already projected that inflation would hit 40% this year. Before the default, the peso had fallen by 25% against the dollar in 2014.