ARGENTINA’s investability grows rapidly
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The Global Macro is now very much in favor of ARGENTINA, which in structural terms has some setbacks which are very difficult to resolve,” evaluates said, CEO of Puente, the financial group that grew as an exchange house and today is the largest underwriter of provincial debt.
Federico said that the current government knows about the structural problems such as the fiscal deficit and the bill for energy imports and that they have the tools to relieve them and solve these issues within a few months.
After having made some progress in 2011 before halting Tomasevich mentioned that there was no need for change back then and now if they want to they can. He said “to finance infrastructure and energy, you have to be able to issue debt in the international market because they are great investments. With the sacrifice of reserves, the government is paying the cost of not generating sudden changes because it’s part of their objective.”
He noted that the government should go bit by bit as the increased tax hike that catches cars also catches cars that aren’t as high end. That the market value it so high as to reduce risk and reduce the exchange rate gap. They’re doing it because they are aiming to have the opportunity to access international credit. Narrowing the gap will encourage exporters when they see a competitive exchange rate to liquidate foreign exchange.
Argentina is receiving four to six international funds per week not only to invest in real and financial assets but in the real economy. Since 2008, in Argentina, hedge funds and funds dedicated to frontier markets have been operated to high volatility. “For six months we have seen interest from major investment funds from north America, Asia, Europe and the Middle East.
The industries they have been investing in are financial assets and they are beginning to look for agribusiness companies especially in the food production chain.
“I’m not a political analyst said Tomasevich Federico, but there is a noticeable change in political and economical climate. Much liquidity is entering the market shares, prices doubled in the last 60 to 90 days. For the last two months bonds have risen daily and still have room to rise a lot.
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