Argentina told it must pay back £45 million UK loans that were partly used to fund Falklands invasion

Britain wants Argentina to pay back £45 million in loans that the country's former military junta used to fund equipment that was later used in the invasion of the Falkland Islands.

The demand comes amid continued tensions between London and Buenos Aires around the 30th anniversary of the war over the South Atlantic territory.

Details of the loans, uncovered by a campaign group, showed how Argentina's government borrowed the money in 1979. It was partly spent on equipment used to seize the islands three years later, before they were recaptured by Britain.

The South American country later ran into financial crisis and failed to repay loans - including those to British exporters underwritten by the UK Government.

Now the debt has been inherited by UK Export Finance, an arm of Vince Cable's business department - which says it has "no plans to offer debt forgiveness". Read More