The important risk qualifier warned that despite the positive corrections to the economy, risks persist before the exit of the stocks and financial volatility.
For Moody’s there is a risk of sovereign breach.
Argentina It crosses an economic adjustment process that strengthens its sovereign credit profile, although risks persist. This was indicated by the Moody Risk Qualifier ‘s In its most recent report, in which a positive perspective for the country highlighted thanks to the tax and monetary adjustment, as well as to the reduction of macroeconomic imbalances.
According to Moody’s, Javier Milei’s government has promoted a zero deficit policy by strong spending cuts, reducing debt load and eliminating monetary financing of the Central Bank. Inflation has begun to moderate and the official exchange rates were almost unified by setting “crawling peg” in 1%.
The leaving of the stocks, according to Moody’s
However, The qualifier warns that important risks persist, especially in the process of eliminating exchange and capital controls. While this measure could help rebalance external finances and attract foreign investment, there is also a danger that generate new imbalances or affect the stability of the balance of payments, which could compromise the reform agenda and increase the risk of non -compliance.
The report also highlights that, Despite the social costs of the adjustment, the Milei government has considerable popular support, which could translate into a favorable result in the next legislative elections. In addition, the greatest coherence and predictability of the economic policy framework have strengthened market confidence, which could facilitate access to international financing.
Milei Caputo Dollar
Scope
Moodys warns for a risk that could affect Javier Milei’s economic program
Moody’s concludes thatS Credit Fundamentals of Argentina improved thanks to these adjustmentswith key indicators such as the debt/GDP ratio and income/income showing more favorable performance compared to other countries of similar qualification. Nevertheless, He warns that the success of the economic program will depend on the government’s ability to execute the next reforms without generating financial instability.
Source: Ambito
