Friday, February 3

The country risk fell almost 150 points and touched its lowest level in more than 3 weeks

In the fixed income segment, sovereign bonds in dollars rose to 9.5%. The increases in public securities were led by the Bonar 2038 (+9.5%); the Bonar 2035 (+7.7%); and Global 2030 (+7.1%). While the Global 2041 grew 9.2% and the Global 2035 rose 7.6%.

Meanwhile, shares of Argentine companies on Wall Street closed up 10.2%, led by Banco BBVA. Grupo Financiero Galicia also rose strongly with 9.8% and Banco Macro with 9.1%.

In that framework, the Cash Settlement dollar (CCL) fell 3% (more than $7) to settle around $226. Meanwhile, the MEP or Stock Exchange dollar fell in a similar proportion and traded below $217. In the parallel market, the blue dollar sank $10 to $212.50.

Argentina reached an agreement with the International Monetary Fund (IMF) to restructure the payments of a debt of 44.5 billion dollars, President Alberto Fernández announced this Friday. The Government canceled this Friday a payment of some 700 million dollars and faces other maturities in the coming months that would be impossible to face without financial aid.

“We had an unpayable debt, which left us without a present and a future, and now we have a reasonable agreement that will allow us to grow and meet our obligations through our growth,” Fernandez said in a television message.

The mandatary, that he was looking for a deal that did not imply a strong adjustment of the economy that could push more Argentines into poverty, He explained that the agreement will not condition the country’s economic policies and that it will not imply an abrupt cut in public spending. “This agreement does not condition us, we will be able to act exercising our sovereignty and carry out our growth, development and social justice policies”, Fernandez said.

For his part, the Minister of Economy, Martin Guzman, revealed later at a press conference that the country agreed to a financing program with the IMF for about 44.5 billion dollars, which It will last for two and a half years.

Guzmán said that the deal with the agency will involve a “gradual” reduction of the fiscal deficit that reaches 1.9% of the Gross Domestic Product in 2023 and 0.9% by 2024. And he added that the deal, that still needs to be confirmed by the IMF and that needs congressional approval, it will not impact the country’s growth and will imply a gradual reduction in financing from the central bank to the Treasury, so that it reaches almost 0 in 2024.