In this frame, the Country Risk, prepared by the JP Morgan bank, climbs five units to 1,733 basis points, a new record since September 10, 2020, when the index was reconfigured after a multi-million dollar sovereign debt restructuring.
The deterioration of the bonds occurs before the difficulties the country has in solving persistent macroeconomic imbalances such as high inflation and fiscal deficit, to which are added doubts about the outcome of the negotiations with the IMF
“There is a deterioration in living conditions for six years in a row, including the pandemic, the employment crisis, a general devaluation of production and income,” said Marina Acosta of the consulting firm Analogías.
It should be remembered that, While Argentina continues to negotiate with the IMF to extend the terms of its debt and lower rates, on Monday it paid about US $ 390 million in interest. due to the enormous liability incurred during the previous government of Mauricio Macri.
“Argentina is not in a position to pay this debt in 2022 and 2023, so it has to renegotiate and restructure its debt so as not to go into default with the IMF. The meetings are part of the negotiations: there is time, there is no need to rush either”, affirmed Javier Timerman, partner of the firm AdCap.
In parallel, it should be noted that At the beginning of this week, the Government announced that the Australian firm Fortescue Future Industries will invest just over US $ 8 billion to produce green hydrogen in Argentina., which means one of the most important foreign investments in the country of the 21st century.
The Minister of Productive Development, Matías Kulfas, highlighted at the United Nations Conference against Climate Change that, in addition to being a project that contributes to mitigating carbon emissions, “it is also part of the solution to exchange rate problems.” “Argentina has a banking problem because it lacks investments and exports, this project provides both,” he said.
Regarding the link between finance and climate change, Timerman said he had no doubts “that in the future it will only be possible to issue debt, both corporate and sovereign, that incorporates aggressive care for the environment.”
Actions
After scoring its largest daily increase in a month and a half on the previous day, the leading index S&P Merval de Bolsas y Mercados Argentina (BYMA) grew other 2.1% this Tuesday to settle at 89,294 points.
Among the shares that increased the most in the Buenos Aires stock market, those of Aluar (+ 4.6%) and Ternium (+ 4.1%), two export companies that stand out for their ability to cope with adverse contexts, stood out.
On Wall Street, ADRs exhibited disparate behaviors. Among the gains, Galicia (+ 2.9%) stood out, while YPF led the losses (-4%).
Source From: Ambito
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