Country risk is falling and reaching its lowest level in more than seven years. Although the JP Morgan index stabilized at around 650 basis points after the general election, The announcement of the Reserve Purchase by the Central Bank (BCRA) was the news that triggered the decline in the indicator. associated with a recovery in the price of Argentine bonds.
In the third round of the week the Country risk falls by six units and is 555 basis points (-1.1%). according to the screens of Rava Bursátil. To find a similar value, you have to go back to July 30, 2018, when the index closed at 552 points. Under Mauricio Macri’s government, values of 350 basis points were observed at the end of 2017.
This compression of the indicator is Consequence of the rise in government bonds in recent rounds, after the central bank announced the start of a $10,000 million reserve purchase plan for 2026 and the update of exchange rate bands for inflation. Debt stocks turn green again this round, up 0.71% (AL35D) for Bonares and 1.40% for Globals (GD46D).
In fact, Facimex Valores highlighted this On Tuesday, all global securities closed with single-digit returns, an unprecedented phenomenon since they were listed in September 2020 following restructuring which the then Minister of Economy Martín Guzmán was confronted with. Last Friday, country risk closed at 624 basis points and has since lost 69 units (-11%).
“Argentina is already on the verge of returning to the global market. Access to the local market has already been restored with the placement of Bonar 2029 (AN29) and with this week’s announcements the government has taken the missing step to consolidate sovereign risk compression. To regain access to the global market, all that remains is to approve the 2026 budget to be able to issue debt under foreign law without violating the Law on Strengthening the Sustainability of Public Debt,” they added from Facimex Valores.
After the continued good investment climate after the parliamentary elections Last week, the Ministry of Economy issued a dollar bond under local legislation, something that had not happened since 2018. The interest rate was 9.26% and the government welcomed the news as it represented a sovereign risk of 550 basis points, almost 100 points above the current date.
News in development.
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