• Wed. Feb 21st, 2024

Wall Street Banks Make Uncertainty Amid Defeat of Ruling Party


Feb 12, 2024
Monday Meeting: Wall Street Banks to Monitor Government Bonds and Investments

As the ruling party’s defeat in Congress and market uncertainty loom, Wall Street banks are set to embark on a visit to Argentina tomorrow. Barclays, Bank of America, Citigroup, Goldman Sachs, and HSBC are among the entities leading the trip to meet with government officials and discuss Javier Milei’s program, bond prospects, and potential investments.

The visit will include representatives from these banks along with a group of clients (mostly investment funds) who will talk with officials from the Executive, Ministry of Economy, and Central Bank as well as businessmen, political consultants, and economists. The main focus of their discussions will be on rediscovering Argentina while keeping a cautious eye on its economic and inflationary challenges.

BlackRock bought last week US$ 1.8 million of the Bopreal dollar bond with which the government seeks to regularize commercial debt of companies. This operation became known after the meeting that Milei had virtually with Larry Fink, CEO of BlackRock. In recent days, some of the largest banks in the United States issued cautionary signals about Argentina. JP Morgan estimated double-digit inflation until the first quarter and predicted a discrete jump in official dollar in June due to governability issues. The bank considered rejection of omnibus law “an unprecedented event” and warned that “lack of support from Congress suggests that administration should recalculate its political strategy.”

Investors will arrive in Buenos Aires starting tomorrow for talks on bonds they purchased last December. They hope to meet with Ministers of Economy Luis Caputo and Finance Pablo Quirno as well as head Central Bank Santiago Bausili and its Vice President Vladimir Werning. However, major international forum maintains that this trip is within framework visits organized every year to different countries in region. Despite any uncertainty surrounding their visit to Argentina

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