The Normalization of Sovereign Credit and Institutional Reintegration
The successful negotiation of a new extended fund facility with the International Monetary Fund and the dramatic compression of sovereign risk premiums indicate that Argentina has fundamentally exited its period of financial isolation. As the Central Bank finalizes the removal of foreign exchange controls, decision-makers should monitor how rapidly international capital markets reopen for provincial governments and premier Argentine corporations seeking to refinance legacy debt or fund new capital expenditures.