Thursday, December 2

Country risk exceeded 1,800 points for the first time since the swap; ADR fell to 3.7%

“The Argentine debt does not find a floor and the weighted average price is close to the post-restructuring minimum. Added to the economic uncertainty itself is an equally volatile international context ”, the stock exchange company said.

In this framework, the country risk -prepared by the JP Morgan bank-, grew 1.2% (18 units) and recorded a new historical record since the exchange, reaching 1,816 basis points.

According to analysts, the details of the multi-year program that the Government will send to Congress next month are carefully awaited, which is also considered important for the development of negotiations with the International Monetary Fund.

In the closing panel of the 2021 Monetary and Banking Conference of the Central Bank (BCRA), the Minister of Economy, Martín Guzmán, assured that the process of economic reactivation of the country is “strong”, which is why he projects a GDP recovery of almost 10% by 2021.

The official highlighted the growth, both in terms of quantity and prices, of exports and estimated a 30% growth in investment throughout the year. “This not only means a boost to recovery, but more productive capacity in the future,” he said.

In this scenario, Guzmán warned that “the main obstacle to maintaining stability is the debt with the IMF that must be refinanced on the basis of terms that allow the Argentine economy to continue recovering.”


For its part, the BYMA S&P Merval index fell 0.3% to 83,481 units, after losing 2.2% in the previous session and accumulating a fall of 11.3% since the results of the elections of half length.

The Merval measured in dollar CCL returned the entire “electoral trade” and currently stands near lows after the STEP. Although today it rebounded slightly to the upside due to the fall of the CCL, since the general elections the index fell 25.3%, with the banking and energy sectors leading the falls.

At the same time, the declines of Argentine stocks on Wall Street were led by IRSA Propiedades Comerciales (-3.7%), Banco BBVA (-3.4%) and Corporación América (-3.3%). So far in November, ADRs have accumulated decreases of up to 22%, as in the case of BBVA.

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