Bank Of America (BofA) maintained its constructive stance regarding Argentine bonds. The entity also noted that the country’s performance in terms of stabilization is exceeding expectations.
One of the largest banks in USA, Bank Of America (BofA), pointed out that the stabilization plan of the Government of Javier Milei, “It’s working better than we expected” and that the government’s commitment to fiscal balance “is very strong.”
They also stated that “the willingness to pay the external debt is high and there is an ambitious agenda of microeconomic and deregulatory reforms underway. “We maintain our recommendation to overweight Argentina’s external bonds, following our recent investor trip,” highlighted BofA.
They also maintained that “tax laundering could have positive side effects” and that “bonds have risen significantly so far this year”, but they considered that they are still “far from discounting that the government will avoid another debt restructuring in 2026 or later.”
On the other hand, the entity’s analysts wrote that “we believe that the balanced budget is feasible, amid a rebound in activity and more cuts to energy subsidies” and warned, in relation to the PAIS tax: “Import taxes are due in December, which poses a challenge.”
Source: Ambito
