Blejer says debt-swap acceptance rate to reach 85%

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Economist Mario Blejer predicted that Argentina's debt-swap will be "successful", and estimated it will "achieve an acceptance rate of 85 percent among European bondholders, due to the current Greek financial crisis."

"I think Argentina's debt-swap paradoxically benefits from the global situation," the former Argentine Central Bank governor said Monday during a radio interview.

"Emerging economies are paradoxically benefited from this kind of financial turmoil, because nowadays they are deemed as relatively sane economies with small public debts, and are often considered the safest places to invest in comparison with largest economies," Blejer added.


"Amid the current global financial environment, it is better to have new Argentine bonds -with a low default risk- than holding overdue bonds," according to Blejer.


The former Central Bank governor considered Argentina's debt swap will be "successful, especially considering the strategy implemented by the government, which aims at re-entering international capital markets as its final objective." "However, re-entering the international global markets will have a higher cost for Argentine," Blejer explained.


"Now, in view of the measures already implemented by the government, and if the risk perception decreases, Argentine would likely re-enter international capital markets. Once this is achieved, the main issue will be whether Argentina is to pay a single-digit interest rate or not," he added.

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