Nov. 26, 2012
American Express has revoked the personal credit card of Argentine president Cristina Fernandez de Kirchner due to concern that she "does not understand" how debt is supposed to work.
The U.S. card company issued a statement today saying that it could no longer extend a $200,000 revolving credit line to the leftist firebrand because of her 'belligerent attitude' towards repaying creditors:
"Bonds and credit cards are both forms of loans," the statement reads, "When you make a loan you give someone money and they promise to pay you back. You can't skip the 'pay you back' part. Its important."
Kirchner has said she will defy a recent U.S. court order to pay bondholders the full value of sovereign debt defaulted upon in 2002.
Most investors took a debt exchange deal worth about 30% of their original investment, but a small number took their claims to court and won a full settlement, which Argentina is refusing to pay.
Kirchner quickly responded to Amex's move by labeling the company a "neo-imperialist stooge" working for the International Monetary Fund.
