Bank of America predicts Argentina’s comeback to global markets is likely, supported by mid-term elections and an IMF deal. The government could refinance debts, with projected manageable debt service levels and GDP growth, although risks from low reserves and global interest rates remain.
Bank of America (BofA) anticipates that Argentina may soon return to global debt markets, especially in light of upcoming mid-term elections and an anticipated agreement with the International Monetary Fund (IMF) this October. A more favorable legislative environment could lead to new bond issuances or liability management strategies focused on refinancing short-term debts.
In conclusion, Bank of America projects a potential return of Argentina to global debt markets driven by political and fiscal reforms alongside negotiations with the IMF. Despite optimism regarding GDP growth and inflation management, challenges such as low international reserves and rising global interest rates pose risks. Positive political developments and economic stabilization could significantly improve Argentina’s market image and investor confidence.
Original Source: www.fi-desk.com
