Economics
Argentina’s Dire Month: From Dry Run Election to Quasi Default
- Government proposed debt reprofiling amid growing cash crunch
- Bonds slumped about 50% in August after vote changed outlook
A cyclist rides down a street in the financial district in Buenos Aires, Argentina.
Photographer: Erica Canepa/BloombergThis article is for subscribers only.
Even by Argentina standards, August was a particularly dire month.
Markets have tumbled almost without stop after opposition leader Alberto Fernandez routed President Mauricio Macri, a market favorite, in an Aug. 11 primary vote, seen as a dry run for the Oct. 27 election. The peso is down more than 23%, by far the worst in emerging markets, and bonds have yet to find a floor, with notes due 2021 down more than 50% this month and yields of 75%.