Country risk reaches its maximum value since 2014 – 18/04/2019

The country risk this Thursday, it stands at 3.77% and reaches 853 basis points, its highest value since June 17, 2014, under the government of Cristina Kirchner.

That's when the US Court dismissed Argentina's appeal and confirmed the decision that forced the country to pay vulture funds. Argentina was 15 days late and it was unlikely that she could pay.

Look also

Clarin Bulletins

What happened today? We tell you the most important news of the day and what will happen tomorrow when you get up

Monday to Friday afternoon.

Country risk makes the difference between what the US Treasury bonds pay and the Argentineans.

While North American securities yield 2.56%, the country's securities pay 11% and the one that expires in 2021 reaches 12.86%. That's what Argentina should pay to get into debt.

The risk triggered, which had increased in recent days, is aggravated after the measures announced by the government on Wednesday, including the postponement of the rate hike. This decision will involve an expense of $ 9,000 million, in the midst of official efforts to comply with the zero deficit for this year planned with the IMF.

Look also

The indicator prepared by the MSCI as well as the CDS or the insurance against the risk of default highlights the doubts of investors on the ability to pay Argentine debt. Despite the $ 57 billion reserve line of the Monetary Fund, the market still does not believe that the country can meet all its obligations beyond 2020.

The October elections, with the absence of a clear winner and uncertainty about Cristina Kirchner's new presentation, end up as fertile ground for instability.