* Argentina’s country risk spread measured by US investment bank JPMorgan Chase rose to 2,512 basis points on 6 March. This is the first time that Argentina’s risk spread has exceeded 2,500 points since September 2019, when the country was suffering a currency crisis. It is also the highest spread since the government led by President
Alberto Fernández assumed office in December 2019. The increase in the risk of default measure has been attributed to the effects of the coronavirus (Covid-19) outbreak on the global economy, but also on uncertainty over the Fernández government’s ability to successfully renegotiate Argentina’s onerous foreign debt. The uncertainty over the debt renegotiation efforts rose after a technical mission from the International Monetary Fund (IMF), sent to Argentina to analyse the government’s economic plans and discuss its debt renegotiation strategy, concluded its visit last week without making any announcement over whether it supports the Fernández administration’s economic plans and proposed debt renegotiation strategy.
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