Global banking panic effect: country risk shoots up almost 9% and is close to 2,500 points

Argentine bonds plummet 5% this Monday, March 13, due to the crisis that caused the fall in two investment banks in the United States and, consequently, the country risk shoots up 10.7% to 2,444 basis points. Meanwhile, the Argentine papers in Wall Street they yield 4% and the S&P Merval falls more than 1%.

The collapse is due to investors’ fears of contagion that could cause the collapse of Silicon Valley Bank and Signature Bank, two financial institutions with portfolios oriented towards the innovation economy. While in New York there are drops of more than 1%, the European stock markets fall between 3% and 4%.

The concern of investors could not be calmed even by the President of the United States, Joe Biden, who announced that he will protect investors who had deposited their money in these banks.

With the panic spreading at the decision-making tables, Argentine bonds cannot find a floor and continued with the falls that had already begun last week, raising the value of the country risk to 2,444 basis points.

Learn more – Follow the price of the blue, official, CCL and MEP dollar in Argentina

The slump also spread to the stock market, as Wall Street-listed Argentine ADRs are shown in red throughout the listing. Among the most pronounced falls were Transportadora Gas del Sur (6.5%), Banco Macro (5.3%), Grupo Galicia (5.2%) and Superville (4.3%), among others.

Global financial uncertainty opens a new storm front for the Argentine economy as fears of a retraction that will affect the country’s already weak exports will intensify.

In the next few hours, Argentina and the IMF will announce new goals for the ongoing program, but which was closed prior to learning of the bank collapse in the United States and whose effects were not contemplated.