Argentina country risk plummets to lowest since May 2018
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A seller waiting for customers at a street market in Buenos Aires, on Dec 23.
PHOTO: REUTERS
BUENOS AIRES – Argentina’s closely watched country risk index fell sharply on Jan 7 to its lowest level since May 2018, according to traders, reflecting investor confidence in the South American country’s assets.
The index, which shows the yield spread on bonds versus comparable US debt and is a reflection of how investors view the country’s debt, fell more than 100 basis points to a level of 454.
Argentina’s assets have become more attractive for investors as its strained economy emerges from a painful recession and public finances stabilise due to President Javier Milei’s tough austerity measures and cost-cutting.
The country’s trade balance, which notched its 12th consecutive surplus in November 2024, is among the reasons for the drop in country risk, trading group ABC told Reuters.
The risk level has also fallen in part because of improved foreign reserves, a repurchase agreement loan of US$1 billion (S$1.36 billion) with five foreign banks and expectations of a new debt agreement with the International Monetary Fund, ABC said. REUTERS
Argentinian President Javier Milei has used tough austerity measures and cost-cutting to turn his country’s economy around.
PHOTO: REUTERS
