Argentine Presidential front-runner Fernandez pledges to bend debt-deadlock

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Argentine Presidential front-runner Fernandez pledges to bend debt-deadlock

On Friday, the 27th of September 2019, the likely winner in Argentina’s presidential election scheduled to be held on October 27th, populist Alberto Fernandez had reassured potential creditors saying that if he was elected next month, he would be avoiding any kind of deadlocks on bond payments, while Fernandez had also eased concerns among creditors by adding that he would be seeking a moderate “Uruguay Style” debt reform, a gradually adopted macroeconomic and structural reform in the financial system witnessed during Uruguay’s financial crisis back in 2004.

Although, the front-runner of Argentine Presidential election, Fernandez’s comment came as a soothing music to the creditors’ ears, investors had been closely monitoring Fernandez’s moves after the third-largest Latin American economy was fiercely prescribed to renegotiate over its $100 billion in bonds followed by a steep market crash on August that had almost entirely pushed the friable Argentine economy towards the verge of an imminent collapse.

Meanwhile, citing a cautiously optimistic tone over Fernandez’s Uruguay-style reform, a senior emerging market strategist at SMBC Nikko Securities America in the New York, Roger Horn said on Friday (September 27th), “Hearing Fernandez refer to a Uruguay-style re-profiling is a very positive thing.

It at least shows a market-friendly intention,” adding that most of the investors were still bracing for havoc-scale losses.