Greater disbelief: the country was at risk to 761 points, the highest in three months


Local decline and global uncertainty affect the country; investors will see greater Government weakness, & # 39; increase the level of debt Source: Archive – Credit: Marcos Brindicci / Reuters

Even though

Central Bank

and the Finance Department is going to achieve to & # 39; achieving its objectives of a monetary fund and fiscal deficit,
Rural risk (EMBI) is increasingly evolving and then climbed to 761 submissions, hit by The economic downturn that weakens the political power of Mauricio Macri ahead of next year's president elections.

The international context of elevation and commercial tension rates has not helped in the past few days to include accessibility, affecting more emerging markets, but in particular to Argentina, for its rewards and high arrears.

"The danger of our country is of great concern.
Less than a month ago, Argentina had been driving 600 points and not only did it do it, but today we are over 750. It's worried because Today is in the Bank; Midland is comfortable two months and a half. With your money goal, you'll even do it by going to # 39; reducing rates. Despite this, country risk is not affected. As it happens in every area, one thing is to lose confidence and another is harder to be restored again, "said Christian Buteler, a financial analysis.

Argentina had started the year with a country risk level of 347 points, and higher at 783 on 4 September, after the dollar raised more than five pesos in one day.
Since then, EMBI began to decline while the new finance policy had been strengthened. However, on November 7, there is a danger to the country to return to its sea.

"There are three things that explain more than 160 points of EMBI in the last month," said EcoWeek Martin Vauthier, "inside the" In the local section there is much political uncertainty and, beyond the names, What's in the country's economic direction after December 2019: What happens to the IMF? Are there new capital controls? Does the fiscal deficit continue? In addition to Argentina's strong decline, politics are the main argument that establishes ground to low- country ".

"The global context, which is very accessible, is the result that international investors have bought many local bands in 2016 and 2017: Out for more than a decade, a debt case was made very important and now there's not a lot of room to buy buying, "he said.

According to the Faustus Spotorno, from the Center for Economic Studies of OJF, EMBI has a new product on the high debts of the country. "It's between 76 and 80% of GDP at an average level of exchange, if a foreigner wants to sell Argentinian bands, Argentines can not buy, and there are estimates that the elections, which is very polarized, the most important leader of the opponents, Cristina Kirchner, who was in the future to keep the economy fundamentally, "he said.

In terms of how it affects the private sector there is a high level of danger, the analyst explained: "When it comes to competition with multi-national companies, national companies have higher costs because they need They have to be funded at higher levels. "

The main purpose of the increase is at the risk of rural, not only in Argentina, but in most of the markets that are in the world; emerging, the Feachdail Reserve (the US largest bank), which eliminates liquidity is high. Every month he deduct $ 50,000 million of distribution. In Argentina it has been expanded because it is one of the most vulnerable countries, since it has taken many debt and has serious problems for generating a dollar and paying those debts, "said Miguel Angel Boggiano, Head of Cartera Finance.

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