MercoPress. South Atlantic News Agency
S&P places Argentina credit ratings under review
S&P cited the risk of worsening creditworthiness and exchange rate volatility as potential threats to the economic measures undertaken by Macri’s administration S&P said on Friday it may lower Argentina's long-term foreign currency rating from its current B+ grade, which is four notches below investment grade -- and on par with Turkey, Greece and Fiji. The ratings company cited the risk of worsening creditworthiness and exchange rate volatility as potential threats to the economic adjustment measures undertaken by Mauricio Macri’s administration.
“Recent pressure on the Argentine currency could jeopardize the effective implementation of economic adjustment measures, absent further steps to boost investor confidence,” S&P said in the statement.
Still, Macri’s commitment to stabilizing South America’s second-largest economy through difficult austerity measures, such as a US$ 50 billion credit line from the IMF, should help maintain the government’s access to capital markets, which the nation had been locked out of for more than a decade.
After tumbling a world-leading 50% this year, Argentina’s peso stabilized on Friday, following a series of steps by the Macri administration.
The central bank raised its benchmark interest rate to a world-high 60% on Thursday. A day earlier, Macri made a surprise appeal to the IMF, seeking to expedite payments under the record US$ 50 billion credit line agreed in June.
The Fund looks set to oblige, saying that high-level talks will begin Tuesday with the aim of “rapidly” submitting a revised lending plan to the IMF board.
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Read all commentsThe one merit of Mauricio Macri’s presidency – the first formally conservative government elected in Argentina – will be to have debunked several oft-repeated myths.
Sep 02nd, 2018 - 07:31 pm -1The first one: conservative politicians are prudent fiscal managers, while ‘populists’ are lavish spenders.
Well: once all is said and done, Macri will be able to hold workshops on “how to destroy a relatively healthy economy in just three years.”
Another myth is, ‘the rich do not steal ‘cause they already have money.’
Well: a current judicial investigation of public works’ bribes and price-fixing system focused on the previous Kirchner government is getting closer to investigate the clan Macri and their construction companies. The Correo Argentino affair is now dormant in a judge’s file cabinet, while daily wasteful dollar-selling operations allowing banks and financial operators to reap millions will give investigators a field day when all is said and done.
Macri has also destroyed the myth that foreign capitals will help a country develop. As it stands, the only outcome of an orgy of foreign borrowing from private lenders and now from the IMF has put Argentina on its knees, saddling future generations with heavy debt repayment obligations while all economic indicators are on a deep shade of red.
Another myth is that international marketplace assessments are trustworthy.
A business report last June on MSCI’s upgrading of Argentina as an emerging economy just when the country had asked for IMF help shows how wrong – or biased – international assessments can be. Two months later, the country's economy is at a standstill.
Something Macri has excelled in? Sure! Helping the rich, de-financing the state, sabotaging the domestic economy, permitting capital flight, hurting public education, retirees, the sick and the poor.
https://www.forbes.com/sites/kenrapoza/2018/06/21/believe-it-or-not-market-increasingly-likes-argentina-imf-reboot/#4a7dfe77688f
Pooooooooooooooooor REEEEEEEEEEEEEEEEEEEEEEEKIE!
Sep 04th, 2018 - 01:30 pm -1You are correct only in that nothing functions in rg, no one actually works in rg and everyone in rg - if given enough opportunity - are severely tempted to steel and that many if not most will succumb to that temptation.
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