After the defeat of the ruling party in Congress and in the midst of uncertainty in the market due to the fall of its first law, the main Wall Street banks will disembark in Argentina starting tomorrow to meet with government authorities, interested in Javier Milei’s program, the prospects of the bonds and possible investments.
The visit will be led by representatives from Barclays, Bank of America, Citigroup, Goldman Sachs and HSBC, along with a group of clients (mostly investment funds) to talk with officials of the Executive, the Ministry of Economy and the Central Bank, as well as businessmen, political consultants and economists.
Investors will come to “monitor” the sovereign bonds that several funds bought last December. With Milei’s rise to power and her promises to advance a shock plan, dollar titles rose up to 14%, but last week they fell to almost 7% after the setback suffered by the omnibus law and the war unleashed with the governors.
Each investor will have different agendas, based on their interest as in all the other countries where they invest. Barclays will arrive this Monday in Buenos Aires and then the rest of the entities will be added. Next will be Jane Fraser, the CEO of Citibank, who will arrive next Friday. HSBC executives will do so in the last week of February.
The operation became known after the meeting that Milei had virtually with Larry Fink, the CEO of the largest investment fund in the world. JP Morgan estimated double-digit inflation until the first quarter, a discrete jump in the official dollar in June and confirmed that “the main risks are governability and the population’s tolerance to adjustment”.
There are a lot of trips in the next 2 or 3 weeks, the fact that there is so much travel shows that there is interest
During a talk at the Miami Herbert Business School, prior to the fall of the Bases law, its architect Federico Sturznegger highlighted that “Argentina is an extraordinarily stable country, although not in economic or inflation terms.” He predicted: “The corporate state is a very difficult enemy to defeat”.