euphoria over Argentine stocks and bonds


The financial market gave credit to versions that the Government and the bondholders would have reached an agreement after more than four months of negotiations.

There was euphoria in the financial markets over strong rumors about a imminent agreement by debt renegotiation that caused a spike this afternoon in the price of shares and ADRs of Argentine companies listed in New York. At the same time, the risk country it fell 6.6% to 2,119 points.

What you hear in New York and in the local plaza is that on Monday there were talks between the country’s advisory banks, with Lazard at the helm, with the main creditors of the debt where he is. BlackRock as the visible face. The president was aware of the discussions Alberto Fernández and the economy minister Martín Guzmán.

The rumor is that both the Government and the bondholders split differences and that the deal is on the decline. The Government and the bondholders are said to have given in and now the offer will be improved to levels of $ 54.5 for every $ 100 owed by the country. Hence, there is supposed to be some kind of communication late today.

In fact, it is believed that the approval of the creditors to a new deal will cause the country to modify the swap and give it a few hours to enter (it is not known if it would extend until next Tuesday) a new proposal.

Argentine papers on the rise

For now, a press conference in Economics regarding this is ruled out. “It will be several hours until there is some kind of official information about it. The rumor is full and the markets are very high,” they told iProfessional sources linked to Government House.

Thus, the Argentine ADRs rose above 13% while the leading shares of the Buenos Aires Stock Exchange grew 6.6%, amid reports that the Government would have improved the offer and creditors would have accepted an agreement.

The versions indicate that the Government moved the offer to finally satisfy BlackRock.

Four months of talks

With its positive reaction on Monday, the financial market gave credit to the versions that the Government and the bondholders would have reached, after more than four months of negotiations, an offer value agreement.

This would allow the operation of debt swap for about $ 65 billion issued under foreign law.

The papers from Galicia, Macro and Pampa, the most liquid in New York, had started the day with losses of up to 2%, but on the closing they showed increases of more than 10%.

In fact, the prices that won the most during the day were: Galicia (13.27%), TGS (12.46%), Supervielle (12.15%), Pampa Energía (10.97%) and Macro (10, 3. 4%).

Shares also shot up on the local stock exchange.

Shares also shot up on the local stock exchange.

For their part, dollar bonds, which had shown falls of 2%, then cut ground, as did country risk, which improved from 2,316 points to 2,119 points (a 6.6% drop on the day).

The versions indicate that the meeting point between the debtor and the creditor had been set at an offer value, measured in net present value, of $ 54.3, one dollar above the last value offered by Argentina.

It was the only point that remained pending, since there was an agreement to resolve legal issues related to collective action clauses (CAC).

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