Argentine financial markets jittery over October elections uncertainty

Wednesday, March 27th 2019 - 08:48 UTC

Full article 4 comments

Investors in Argentina are starting to get the jitters. The gap in yield between local and U.S.-issued bonds has roughly doubled in the last month in the face of stubborn inflation and mounting peso outflows, heaping pressure on President Mauricio Macri ahead of elections later in the year. Read full article

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Enrique Massot
During his three-year tenure, Argentine president Mauricio Macri has worked to increase the fortunes of a small group that includes his family, close friends and associates.

A handful of energy companies got the government's support to increase their bills to customers exponentially. The government's massive borrowing abroad is gone through a combination of sky-high interest rates and freedom to come and go out of the country at will, which encouraged massive carry trade or bicicleta financiera as we call it, a practice that bled the country of most of what is now a massive foreign debt shackling the country's future.

Meanwhile, a scandal of proportions shake the foundations of Argentina's judicial structure, after the discovery of a scheme to extort money from business people through threats of going to prison.

A federal judge has summoned four times Carlos Stornelli, the prosecutor in charge of the notebooks corruption case, to testify in the case in which he is a suspect of participating in the extortion scheme. Stornelli has refused to attend, and as a result judge Alejo Ramos Padilla has now declared the prosecutor in contempt of court.

The judge, however, can't issue an order to arrest Stornelli because of his role as federal prosecutor.

Meanwhile, the government continues making its best efforts to remove judge Ramos Padilla from the bench, alleging impropriety.

http://www.batimes.com.ar/news/argentina/prosecutor-carlos-stornelli-faces-in-abstentia-ruling-in-espionaje-investigation.phtml
Mar 27th, 2019 - 03:27 pm - Link - Report abuse -1
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Zaphod Beeblebrox
Understandable for investors to be cautious given Argentina's history, but ”If Macri wins the elections, that money will come back.”

What are the opinion polls saying?
Mar 27th, 2019 - 05:59 pm - Link - Report abuse 0
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Jack Bauer
@EM
Don't worry Reekie, CFK will win the Oct elections and by mid 2020, inflation will be down to 5% per year, unemployment will be below 4%, exports will be booming, internal production will be at an all-time high, the country will be producing monthly surpluses and paying off the IMF loan...
Mar 31st, 2019 - 09:30 pm - Link - Report abuse 0
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Zaphod Beeblebrox
JB :-D
Apr 01st, 2019 - 05:36 pm - Link - Report abuse 0
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