Weekly Report - 1 July 2010 (WR-10-26)

Argentina has surpassed its target of 60% adhesion to its US$18.3bn debt swap. Some 66% of the 180,000 so-called “holdouts", who have defaulted Argentine bonds, last week accepted a long-delayed new offer from Buenos Aires, the economy minister, Amado Boudou, revealed. Boudou expressed his confidence that the offer's comparative success would enable Argentina to repair its image and once again borrow on international capital markets. In reality Argentina still has some little way to go before shedding its pariah status in order to be able to borrow at less punitive rates.