Argentine senators discuss in committee the project with half sanction of Deputies by which Argentina reschedules a longer-term loan of some US$45,000 million with the multilateral credit organization.
The financial market, meanwhile, was closely following the geopolitical implications produced by the Russian invasion of Ukraine, while the collapse of oil prices also affected business in general, operators said.
The market remains in a climate of investment uncertainty in the short term, when the Government seeks legislative endorsement of an agreement with the IMF to refinance millionaire debt and the differences in President Alberto Fernández’s coalition are exposed.
The senators began to discuss this Monday the understanding with the international credit organization in commission, in search of an opinion that allows its treatment on Thursday, just five days before the country must face some 2,800 million dollars before the IMF. The Minister of Economy, Martin Guzman, defended the project before the Budget and Treasury Commission and He stressed again that a “no agreement” scenario would have undesirable effects in exchange and inflationary terms.
The Government bets to vote in the Senate on the agreement with the IMF next Thursday, for which a new job of “poroteo” between its own and others is already under way.
Likewise, the dance agreement must have the approval of the agency’s board of directors, which is expected to occur immediately after the sanction as law from Congress. “The approval of the agreement with the IMF in Deputies moves us away from a disruptive scenario and the greater liquidation of agriculture left better prospects in terms of foreign exchange accumulation”, said Personal Portfolio Investments (PPI). He added that “However, the government’s latest measures in the agro-export sector will probably have an impact on foreign exchange earnings.”
Bonds and country risk
On Tuesday, and unlike stocks, dollar bonds withstood the bad investment climate, closing with a disparity. between the climbs, The shortest bonds of both legislations with maturity in 2029 and 2030 appeared: they climbed up to 1.7%. The rest of the titles closed in negative territory, with drops of up to 1.8% (Bonar 2038).
Thus, the Argentine country risk, prepared by the JP Morgan bank, fell nine basis points to 1,807 unitsafter posting an all-time high of 1,991 units last week.
After the recent improvements, the bonds “were put in tune with a liquidation cash (CCL) that pierced the 200 pesos. However, there is still a way to go, so the bonds should rise more, or the financial dollars rebound to be in line with the bonds,” said Roberto Gereto of Fundcorp.
For their part, sovereign dollar-linked bonds traded mixed, with falls of 0.2% and 0.2% for TV22 and TV23, respectively, and a rise of 0.2% for T2V2.
Finally, with the market waiting for a new exchange of the TX22 to be announced this week (there is still 46% of the outstanding, mainly in private hands), and the inflation data for February (it will be known this Tuesday), bonds in pesos with CER adjustment operated without changes in the short section and demanded in the long section, especially the Discount (+0.7%).
Source: Ambito
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