The company MSCI, That reference indices for global funds elaborates, kept Argentina in the category “standalone” (independent), with which The country must wait for now to be promoted again to the “border” or “emerging” market.
In this way, MSCI did not include Argentina in the list of countries with the possibility of being reclassified to a higher category, something that some City operators expected.
“Except for some exception, Argentina could only be included in the list in June 2026 to be reclassified to a border or emerging in June 2027,” explained the head of Latam Advisors, Sebastián Maril.
Since 2021, the country has been listed as “Standalone”a category that shares with other markets such as Jamaica, Panama, Trinidad and Tobago, Bulgaria, Palestine and Ukraine. This classification implies that Argentine actions evaluated by MSCI are not included in emerging or border market rates, which limits the investment of international funds that seek to replicate these indices.
“The result was expected, because uncertainty still persists in the political direction of the country in the medium, and long term. Today Argentina was highly demanded, some pointed out that it could be due to a possible qualification by MSCI. We will see how the news impacts tomorrow, “they commented on the City.
This Tuesday, the ADRS of Argentine Companies They climbed up to 8.5% on Wall Street, After several days with important setbacks, while sovereign bonds scored rises greater than 2%.
The nOTICIA was not well received at the Treasury Palace, at a time when the strategy of the economic team is bursting the return to volunteer markets overlooking the strong debt maturities of 2026.
Despite the launch of what the government calls as “third phase” of the program, from the agreement with the IMF and the lifting OF OFFICIAL MARKET ACCESS BARRERS For people, Argentina’s country risk persists at a level of 700 points.
The market also evalue that the government is borrowing expensive to get reservations International The repo credit announced a couple of weeks ago the Central Bank came out with a rate of 8.5%. Tomorrow, in addition, the Treasury Palace suspended the placement of Bonte 2030 for US $ 500 million that is signed in foreign currency. It is assumed that the rate that the market would have requested would have been a 30%arroba.
Although one of the greatest achievements of the Government of Javier Milei has been to raise the fiscal situation, the market evaluates that such objectives are achieved by force of “political will”, although the expense structurally has not been cut from a reformulation of public administration.
Capital Guardian, relativized the low qualification of ARGentine He said that “it is only one of several indexes that is concentrated in variable income.” “For example, in the JP Morgan index that is concentrated in Doberan Argentina debt is already considered emerging.”
Aurum Securities said MSCI “He decided to keep Argentina as a standalone market, not including it in the list of countries with the possibilities of being reclassified to the border or emerging market.”
“Although it recognizes the reforms applied in April 2025, such as the adoption of a more flexible exchange scheme, the lifting of restrictions for the dividend repatriation and the elimination of obstacles for investment Foreign, MSCI points out that relevant obstacles still persist, especially for institutional investors, “said the entity.
Aurum Securities indicated that “except for some exception, Argentina could only be included in the observation list in June 2026, and in case the process advances, be reclassified in June 2027”.
Last week MSCI had anticipated his gaze On the Argentine situation by pointing out that the financial regulations and information of companies are not always available in English, which impacts “equal rights for foreign investors.”
MSCI too He objected that in Argentina “there have been cases of government interventionsmental that questioned the stability of the economy of ‘free market. “In its evaluation, it also questioned that in the Argentine market there is” a limited level of competition between runners “, which can make transactions more expensive, which in operations are allowed outside the market, but with restrictions.
For the qualifier there is a Dlimited isponability of investment instruments, by virtue of the restrictions imposed on the use of stock market data., and the country “does not meet the minimum liquidity requirements or that its markets are partially closed to foreign investors.”
“In April 2025, the Central Bank announced the lifting of several restrictions, allowing international investors to repatriate dividends obtained as of January 1, 2025. However, several restrictions are maintained for foreign institutional investors, “MSCI said in their revision.
In his report the qualifier said that in Argentina “There is no efficient offshore exchange market” And although he acknowledged that in April the crawling PEG was left behind to give way to an administered flotation regime and that some restrictions were more flexible, Even the MSCI continues to monitor these developments.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
