The estimate does not seem to be very far from the expectations generated since December 1, when it was confirmed that the technical team of the Ministry of Economy and the Central Bank were going to travel to the United States.
That day, Argentine stocks soared up to 14% and Country Risk recorded its biggest daily decline since the 2020 debt swap (on December 1, it was at 1827 basis points and since then, it has been falling, maintaining optimism, to 1747 ). In this framework, the Government also confirmed that Argentina will make the payment of some US $ 1,880 million to the Fund on December 22. In the fixed income segment, sovereign bonds in dollars showed recoveries only that day after steep falls, with improvements in bonds above 7%.
From Moody’s they also assured that the reaction of the markets will be positive but they asked for certainty in the medium and long term: “It is possible that there will be an initial positive reaction of the markets with the agreement, and there is an agreement with a plan but the question is going to be if that plan is maintained. A plan with the Fund is surely going to require a process of fiscal consolidation in the middle of an election, is the government going to do it? The answer is not clear. “
In the meantime, the ruling party was forced to accept that confirmation will take a little longer. This week’s objectives for the technical teams will be to reach an agreement on the main guidelines – fiscal deficit, growth, inflation and exchange rate. For analysts, the agreement will already be finalized with the approval of Congress, in the first quarter of the year. The country will have to face two maturities in March: the Paris Club and $ 2873 million with the agency.
Source From: Ambito
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