Argentine Bond Risk Soars With Investors Losing Faith in Macri Era
- Macri asked IMF to accelerate payments from $50 billion line
- Government forecasting the second recession in three years
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Mauricio Macri’s presidency was meant to lead Argentina out of a dismal period of debt defaults, currency controls and recession. Markets show investors are losing faith in the new dawn for South America’s second-largest economy.
Argentina’s yield spread over Treasuries -- the extra cost it pays to borrow in the bond market compared with the U.S. -- has climbed this month to the highest since December 2014. The spread surpassed Ecuador’s, which has the dubious distinction of having the second-most defaults in the world since 1800, for the first time since May 2015.