Dollars and Debt: what's next?

Informes Mensuales


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Dollars and Debt: what's next?

Septiembre 2019

The primaries have clearly marked a turning point for financial stability and economic performance: investors were in shock and confidence all but disappeared, in a matter of hours Argentine credit spreads went through the roof, all financing dried up and the result was that Argentina could not rollover its debt. 

Confidence was the name of the game.  Argentina’s financial requirements are not particularly large by world standards, but the country still needs to raise money to rollover its debt, particularly the short-term Treasury bills in pesos and in dollars. Without confidence and with no access to the markets even a comfortable short-term situation becomes unmanageable very quickly.  And that is exactly what happened.