Slight increase in country risk remains above 900 basis points

The Country Risk Argentina remains in the higher levels in five yearsbut a little below the peaks reached at the end of April.

The indicator of JP Morgan, which measures the rate differential of US Treasury bonds with emerging peers, rose Tuesday by three units, or 0.3%, for 919 basis points.

Analysts of Search for traders considered that "the Argentine Sovereigns in Dollars who operate overseas began the week on the rise, despite global risk aversion following trade tensions between the United States and China. In this way, the titles extend the increases on Friday that allowed us to recover everything that was lost in the back.

The government will have to pay close to USD 1,700 million amortization – the first of six – and the interests of the Bonar 2024.

"Much will be reinvested in the same obligation, also taking into account that it pays 16.66% of the capital. But beyond that, caution persists – because of political uncertainty – as many investors They expected this expiry will eliminate the Argentine risk", they added from Research for Traders.

A report from the Economic Research Institute of Cordoba Stock Exchange He stated that "the trigger for currency volatility of recent weeks was the increase of Country Risk, which is an indicator of the future payment capacity of the Argentine public debt. "

"Since the debt was contracted to finance excessive public expenditure from the past, it happens that, as always, the origin of the problem is the budget deficit. Therefore, a necessary condition for controlling long-term inflation, the reduction of public expenditure"says the report.