The Country Risk Indicator of Argentina, prepared by J.P. Morgan, exceeded 2,400 basis points at times, reaching one of the highest records of 2019.
The break occurs less than a week after the official inauguration, as head of state, of the elected president, Alberto Fernandez, and the elected vice president, Cristina Fernandez, scheduled for December 10.
A report from the Center for Studies of the New Economy (CENE) of the University of Belgrano (UB) warns that "the 80% increase in debt, verified during the Government of (the current President Mauricio) Macri, obliges the Administration of (President-elect) Alberto Fernandez to a restructuring, due to the shortage of reserves and a fiscal deficit that remains at 4% of GDP. "
Argentine stocks have shown average losses above 40% in dollars so far this year. The picture is even worse if you consider that they have already dropped 51% last year. Short-term sovereign securities accumulate a loss of 60% in dollars in 2019.