Collapse of bonds and equities and country risk increase during IMF visit

As the Central Bank struggled to control the dollar and sold $ 250 million in reserves, Argentine bonds and equities collapsed and country risk rose by more than 100 points, to approach 1950 units.

The new leakage of Argentina's badets took place after IMF mission meetings with finance ministry officials and with opposition presidential candidate Alberto Fernández, and when it is unclear if the Fund will allow the new disbursement for US $ 5400 million provided for in the confirmation agreement.

The Merval index fell 4.3% to settle at 24,732 units after 13. On Wall Street, Argentine banks recorded losses of between 5.31% (French) and 7.36% % (Supervielle). Energy companies such as YPF and Pampa Energía dropped respectively 5.31% and 4.11%.

Over-the-counter bonds experienced an average decline of 1.6% on average and the outlets predicted larger losses almost immediately.

The country risk, which was yesterday until around 1800 basis points, rose by 6.9% until 1946 before noon.

At noon, the Central Bank held a fifth auction to contain the dollar. After 14 years, he had announced a sixth auction which would bring sales to $ 300 million in total. Despite this, the big dollar rose and cost 56 pesos.

"The market is overwhelmed and everything is seller.The debt and the stock market are falling, which puts pressure on the exchange rate and does not reach the efforts of the central bank with the injection of dollars. Discredit is on the rise and translates into a new risk bond of the country, "said a financial agent of the foreign private bank to Reuters.

The market's reaction came after the meeting during which Mr Fernandez strongly criticized the IMF and declared that it was obvious that the emissaries of the Fund would have spoken of a "power vacuum" and of A possible advance of the elections. The versions, which came out of the Front of All bunker, forced the IMF to write an emergency statement Monday at midnight.

"The International Monetary Fund categorically denies that members of the delegation currently in Argentina suggested advancing the presidential elections because of their alleged concerns over a hypothetical" power vacuum. "At no point in the IMF spoke in these terms of the meeting they held today with Mr Alberto Fernández and his economic advisers, "said a spokesman for the agency.

In this climate, the Ministry of Finance began this morning a procedure for delivering letters in pesos and dollars. You must renew a total equivalent to 2.8 billion US dollars. Invoices in foreign currencies that are not renewed will be paid with Treasury funds that will return the level of the reserves. Maturities in settled pesos will influence the exchange rate in the coming days.