“The adverse external climate, together with the internal uncertainties about the IMF, is a combo that is too difficult for operators to digest and thus it accentuates the punishment on domestic assets,” said Gustavo Ber, from Estudio Ber.
The Country Risk restarted on September 10, 2020 in the area of 1,083 points after a million-dollar debt restructuring with private creditors. Since then, the maximum was 1,914 units, recorded on November 30, 2021.
The deterioration of the bonds occurs in a context in which differences persist with the IMF regarding the fiscal path that Argentina should follow. While from Casa Rosada they seek a gradual reduction in the deficit, underpinned more by the side of economic reactivation and collection, from the agency they intend that the country accelerate its arrival at balance, by cutting spending.
“The focus prevails over the negotiations with the IMF and any signal from the ruling party that may come from Washington,” said Portfolio Personal Inversiones.
“Negotiations are extended and time is running out. The government faces payments of US$2.879 million to the IMF in March and, with reserves in critical condition, the chances of a delay in compliance increase,” the brokerage firm estimated.
In this context, Foreign Minister Santiago Cafiero will meet on Tuesday with the Secretary of the United States Department of State, Antony Blinken, to seek political support from the Joe Biden government.
“We have a set of economic and social objectives and, of course, we want to fulfill our commitments, but we need time. We need for that time not to charge us such a conditionality that stops the recovery and inhibits Argentina’s development capacity in the medium and long term,” said Economy Minister Martín Guzmán in an interview with the AFP agency.
Source From: Ambito
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