Starting this Monday, representatives of important Wall Street banks will gradually arrive in the country to hold meetings with government officials and closely evaluate the program implemented by Javier Milei.
The banking entities that will visit the country in the coming weeks will be Barclays, Bank of America, Citigroup, Goldman Sachs and HSBC, which will be accompanied by a group of clients, mainly investment funds. According to the Noticias Argentinas agency, the agenda will include meetings with national authorities, businessmen, political consultants and economists.
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The arrival of executives from the main Wall Street banks occurs after the ruling party's setback with the Omnibus Law and the consequent fear that resurfaced in the market about the degree of possibility that the Executive can apply the reforms in economic matters.
Precisely as a result of the failure of the law, several investors were harmed by the collapse of sovereign bonds (they fell by nearly 7%), on which they had bet with the arrival of Milei to power, and which in the first weeks after the assumption of the libertarian leader had registered increases of up to 14%.
Barclays representatives are the first to disembark in Buenos Aires. (Photo: Reuters)By: REUTERS
Based on the new difficult scenario facing the Government, banks seek to observe the situation first-hand. This was considered by JP Morgan, which assessed that “the main risks are governability and the population's tolerance for adjustment.”
In addition, he maintained that the rejection of the Omnibus Law is “an unprecedented event” and warned that “the lack of support from Congress suggests that the administration should recalculate its political strategy, opening the door to a more difficult period that could lead to a greater volatility.”
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The first bank to arrive this Monday in Buenos Aires will be Barclays, while Citibank will follow on Friday, led by its CEO, Jane Fraser, while the rest of the entities will do so in the coming weeks.
Regarding meetings with Executive officials, the banks' research departments, in charge of organizing the trip, hope that their clients will be able to see the Minister of Economy, Luis Caputo; the Secretary of Finance, Pablo Quirno; the head of the Central Bank, Santiago Bausili; and the vice president of the monetary authority, Vladimir Werning.
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A few days ago, two influential Wall Street banks released new reports with perspectives on the economy of Latin American countries in the coming months and made several mentions about Argentina.
While the investment bank Goldman Sachs warned of a “highly fragile and unstable context” and “the risk of a spiral of devaluation of salaries, prices and currencies”, the Bank of America recommended buying Argentine bonds to 2035.