The%20risk%20pa%C3%ADslow%C3%B3%20yesterday%20another%202%%20and%20ya%20est%C3%A1%20to%20edge%20of%20perforate%20the%20500%20points%20b%C3%A1asics,%20somethingthat%20didn’t%20happen%C3%ADa%20ago%20eight%20a%C3%B1os.%20This%20strong%20demand%20that%20favors%20the%20quotation%C3%B3n%20of%20Argentine%20bonds%20implies%20additionally%C3%A1s%20that%20for%20the%20Governmento%20se%20about%20the%20reopeningof%20international%20market%20for%20the%20placing%C3%B3n%20of%20new%20bonds.
The reduction of country risk to 513 basis points is synonymous with a reduction in the cost of financing for Argentina, although there is still some way to go.The next objective is to bring this indicator to around 450 units, the same level that Ecuador currently has.
This South American country is in the process of placing its first dollar bond on the international market in more than seven years.The funds would be used to buy back debt already issued, in a typical liability management operation.
But%20in addition%C3%A1s,%20also%C3%A9n%20there is%20a%20wave%20of%20issues%20of%20debt%20internationalof%20companies%20and%20provincecias%20argentinas.%20Last%20week%20was%20YPF,%20which%20reopened%C3%B3%20a%20bonus%20to%202034%20y%20pag%C3%B3%20a%20cost%20of%208,10%%20annual%20in%20d%C3%B3lar.%20This%20week%20%20comes%20placement%C3%B3n%20of%20C%C3%B3rdoba,%20then%20de%20successful%20exits%20recent%20of%20other%20districtslike%20the%20city%20of%20Buenos%20Aires%20and%20then%20Santa%20Fe.
Seg%C3%BAn%20a%20posteo%20del%20expert%20en%20fixedincome%20Juan%20Battaglia,%20the%20Ecuadorian%20bonosa%208%20and%2013%20a%C3%B1os%20de%20term%20may%C3%ADan%20exit%20at%20rates%20de%208.75%%20and%209.25%%20annualrespectively.%20As%20the%20debt%20argentina%20quotes%20at%20less%20value%20than%20theEcuadorian,%20the%20rengiving%20today%20of%20a%20bonus%20a%20ten%20a%C3%B1os%20se%20locate%C3%ADa%20in%20the%20area%20of9.5%%20annual.
These are returns that are still above what companies or provinces achieve.The expectation of the economic team is that this rate will quickly converge to that paid by the Government.Therefore, it is reasonable that they decide to wait a little longer to return to international markets to issue new debt, which would be a milestone after almost eight years of total absence.
The reduction in country risk is in line with a fact that investors place great value on, which is the purchase of dollars by the Central Bank and the consequent improvement in the level of foreign currency accumulation.The January intervention already exceeds USD 1,000 million (far above what the market expected) and the stock of gross reserves closed yesterday at a new maximum since the Javier Milei government, at 45,740 million dollars.
This reflects that the BCRA took phase 4 of the monetary plan seriously, which basically consists of the accumulation of reserves and the consequent issuance of pesos to remonetize the economy.A strengthening of the balance sheet of the monetary entity is an insistent demand on the part of investors and the reduction in country risk reflects optimism regarding the Government’s decision to decisively address the issue.
January started very favorably for the expectations of the economic team.Added to the reduction in country risk and the accumulation of reserves is exchange rate stability.The sharp decrease in demand for dollars by the public and companies precisely gave the Central Bank more room to buy foreign currencies in the market throughout the month, even above those projected by most analysts.
Even the placement of international debt by other issuers also allows the Central Bank to accelerate its purchases, because there is an increase in the supply of foreign currency that otherwise would not have demand in the market.
As reported by the BCRA itself last week, some $3.6 billion still remains to be settled in the local market.
