Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Argentina touts economic 'roadmap', investors remain wary

EconomyOct 15, 2021 06:40PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Argentina's Economy Minister Martin Guzman poses for a picture before an interview with Reuters at the Economy Ministry, in Buenos Aires, Argentina December 10, 2020. REUTERS/Agustin Marcarian/File Photo

By Rodrigo Campos

NEW YORK (Reuters) -Argentine senior officials met with private investors in New York on Friday, touting a much sought-after economic "roadmap" for the embattled country and playing up the chances of a positive deal with the International Monetary Fund.

The meeting, which also touched on Argentine politics, was attended by Economy Minister Martin Guzman and Cabinet Chief Juan Manzur and came after a meeting with the IMF to discuss a new deal to revamp some $45 billion in payments.

"A positive agreement with the IMF is a national priority," Manzur said, according to a statement from Argentina's government after the meeting. It said Manzur had underscored Argentina's willingness to honor the debt.

Guzman gave what the government called a "roadmap" on Argentina's economic outlook, saying the state needed to take a leading role in driving an economic rebound after the COVID-19 pandemic, investing in key sectors to boost growth.

"We need to strengthen the state," he said, adding that the country being over-reliant on debt and monetary issuance created problems for the economy, and "so for this reason we consider it important that the deficit gradually decreases."

"I don't think they changed anyone's view, but not for a lack of trying," said an attending investor who wanted to remain unnamed due to the confidential nature of the conversation.

The source, who said the presentation was good and both Guzman and Manzur answered consistently throughout, said there is a lot of structural uncertainty in Argentina.

"Countries in general tend to be a little more consistent in terms of policies, even when they switch parties there are certain things that you do not change. Argentina has been very haphazard policy-wise for quite some time."

Investors, stung by inflation, debt and currency crises in the country in recent years, have long complained of a lack of a clear economic plan. The country defaulted on private foreign debt last year before a major debt restructuring.

The meeting came days after Guzman met with IMF head Kristalina Georgieva, and the two agreed to continue working on developing a credible loan program.

Argentina and the IMF have for months been negotiating a program to replace one struck in 2018 that failed and left the South American country as the largest Fund borrower with a debt close to $45 billion. Argentina pledged to have a new deal in place by the end of March at the latest.

Last year Argentina restructured some $65 billion in debt with private international creditors, but the restructured bonds are trading at distressed levels as investors worry about the soy exporter's economic outlook.

Argentine dollar bond prices were little changed on Friday, trading between 32 and 39 cents on the dollar across the curve.

Argentina's peso currency has devalued some 15% this year amid strict capital controls that hold the official rate in check, though these controls have created a wide gap with prices in popular alternative exchange markets.

The South American country is also struggling with high inflation running above 52% annually.

Argentina's government said the meeting was attended by investors, including from GoldenTree Asset Management, Morgan Stanley (NYSE:MS), Redwood (NYSE:RWT) Capital, Goldman Sachs (NYSE:GS), Gramercy and BlackRock (NYSE:BLK).

Argentina touts economic 'roadmap', investors remain wary
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email