Argentina's Cristina Fernandez Has Low Chance of Re-Election, BofA Says

Argentine President Cristina Fernandez de Kirchner is unlikely to stand for re-election next year after the death of her husband, Former President Nestor Kirchner today, Bank of America Corp. said.

Fernandez “has low chances of gathering the necessary support of the Peronist party to stand for re-election in 2011,” Marcos Buscaglia and David Beker, economist and strategist at Bank of America in New York, wrote in a note today. “The Peronist party is likely to unite behind an alternative candidate.”

Kirchner, who between 2003 and 2007 helped his country recover from default and devaluation, died of a heart attack at their home in the Patagonian town of El Calafate. Argentine bonds and stocks gained as the death of the former leader bolstered investors’ speculation that opposition lawmakers will win next year’s presidential election.

The former president’s death reduces uncertainty for investors as to whether the Kirchners would stay in power after 2011, according to the Bank of America report.

“The year ahead is likely to be uncertain as Nestor Kirchner was the power broker in the government,” Buscaglia and Beker wrote, “but we expect the opposition to facilitate Cristina Kirchner’s remaining tenure of government.”

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