diff -r d210311b37c9 Cython/Compiler/Nodes.py
--- a/Cython/Compiler/Nodes.py	Mon Feb 23 19:04:54 2009 -0200
+++ b/Cython/Compiler/Nodes.py	Mon Feb 23 20:29:29 2009 -0200
@@ -1241,7 +1241,7 @@
                     if default.is_temp and default.type.is_pyobject:
                         code.putln("%s = 0;" % default.result())
                     default.free_temps(code)
-                    code.put_giveref(arg.default_entry.cname)
+                    code.put_var_giveref(arg.default_entry)
         # For Python class methods, create and store function object
         if self.assmt:
             self.assmt.generate_execution_code(code)
diff -r d210311b37c9 tests/run/argdefault.pyx
--- a/tests/run/argdefault.pyx	Mon Feb 23 19:04:54 2009 -0200
+++ b/tests/run/argdefault.pyx	Mon Feb 23 20:29:29 2009 -0200
@@ -28,6 +28,11 @@
 <argdefault.Bla object at ...>
 >>> g5() #doctest: +ELLIPSIS
 <argdefault.Bla object at ...>
+
+>>> f6()
+7
+>>> g6()
+7
 """
 
 GLB0 = (1, 2)
@@ -76,3 +81,10 @@
     return arg
 def g5(Bla arg=Bla()):
     return arg
+
+
+cdef int GLB6 = 7
+def f6(int arg=GLB6):
+    return arg
+def g6(int arg=7):
+    return arg