Wait and See
Nov 1, 2011
Argentine CFOs talk to LatinFinance about their financing plans and what lies ahead. Borrowers are unlikely to regain market access anytime soon.
by Karen Schwartz
Argentine corporates seeking funding are likely to have a rough time in the months ahead. Local markets are illiquid and expensive, while international investors are staying clear of high-beta credits as they flee to safer assets. Fortunately, the country’s issuers have few immediate needs, but they will eventually require access to foreign capital if they wish to grow, company executives tell LatinFinance.
Like CFOs the world over, Argentine executives are staring at a rather opaque future after having benefited from what has been one of the strongest years for the country in terms of growth. Uncertainties abound, however, now that Cristina Fernandez de Kirchner has won her second term as president. GDP growth may have hit 8.6% year-on-year in August, but economists say that this was largely driven by pre-election stimulus, and many are questioning the sustainability of her expansionary policies.
Against a backdrop...
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