Lack of progress brings Argentine default closer

A lack of progress in negotiations between the Argentine government and the holdouts from the 2001 debt default means that there is an increasing chance that the authorities will be forced back into default on 30^th July. That is likely to quash any hopes that the economy will make a quick recovery from its current recession. But the good news is that there appears to be little risk of a re-run of 2001/02’s deep recession and painful crisis.