Category: Argentina
Even Blue Chips
Nobody is exempt from the disenchantment with emerging market risk. Long-term capital buyers are scarce even at Metrogas, the British Gas affiliate in Argentina, despite rising revenues and cashflow.
Getting Hemmed In
Domestic investors should absorb Argentina’s financing needs for the rest of the year. But a huge deficit and eroding export competitiveness remain key problems for the sovereign and the markets.
It’s Currency That Counts
Argentina’s currency board maintains strong local support but receives mixed reviews internationally. Andrew Powell, chief economist at the Central Bank of Argentina, defends the system.
Lots of Cash but Little Lending
Whether the problem is high interest rates or low demand, corporate lending and investment in Argentina is at a standstill, even though the capital markets are willing to do business.