The capital market in Argentina: warming up the engine

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The capital market in Argentina: warming up the engine

June 2016

The local capital market is relatively small and unsophisticated. This is a legacy of a long history of monetary instability, macroeconomic crises and massive breach of contracts, which undermined the confidence in the local currency and economic institutions. As a direct consequence, most Argentines save abroad the country (which eases financing terms and credit availability for non-residents) outside the local capital market or through real estate vehicles, "bricks", which were considered a safe asset as the property right have been respected with no exceptions in the last 40 years, or in dollar bills (under the mattress).