The new agreement, which must also be approved by the directors of the multilateral credit organization, establishes that the payment period for each disbursement is 10 years, with a grace period of four and a half years, for which the country will begin to pay off the debt in 2026 and will end in 2034.
According to what transpired after the debate in commissions of the Chamber of Deputies, there is the possibility of negotiating an alternative project so that the initiative is not rejected by the opposition.
“The project that Congress debates did not show great novelties: it is a short-term agreement, undemanding and with considerable margins of maneuver to make its fulfillment viable at least in 2022-2023, which is an electoral year where the presidency is played,” he said. ABC.
The consultancy estimated that the agreement “avoids the possibility of a default and a disruptive scenario, helps to reduce the over-uncertainty a little, but that it does not finish convincing or clear the panorama of challenges ahead.”
Bonds had been severely affected by a general outflow of capital from emerging markets to “safe haven” assets due to the escalation in the conflict between Russia and Ukraine, which in recent days caused notable jumps in the price of commodities and strong ” economic reprisals” by the United States and European countries against the country presided over by Vladimir Putin.
In this framework, the country risk reached 1,991 basis points at the beginning of this week and recorded its highest value since the debt swap with private bondholders in 2020. This Wednesday the indicator measured by the JP Morgan bank fell 87 units to 1,892 points.
“With a calm exchange rate and in this context, for those who have pesos, a good option could be to buy bonds in dollars with pesos”Said Nicolás Chiesa of Portfolio Personal Inversiones.
The finance specialist remarked that “bond prices are really low -even below when Argentina declared default for the last time and we had to restructure the debt-“.
Actions
In New York, most local ADRs closed higher. The most important gains were verified in Mercado Libre (+7.9%), Loma Negra (6.6%) and Grupo Financiero Galicia (6.3%).
On the contrary, in Buenos Aires the S&P Merval stock index fell 1% to 87,226 pointsafter advancing a marginal 0.1% the day before.
External stock markets were operating better, supported by oil prices. Wall Street climbs up to 3.5%, while the main European stock markets advance up to 8%.
Source: Ambito
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