Argentina's country risk, measured by JP Morgan's EMBI+ index, closed at 627 basis points on Friday, December 5, reflecting optimism following the announcement of new dollar debt issuance.
Argentina's country risk consolidated at low levels, closing at 627 basis points on Friday, December 5, the last trading day before Sunday, December 7. This indicator, produced by JP Morgan bank, measures the difference between the yield on the country's dollar bonds and U.S. Treasury bonds, reflecting the probability of default on external debt obligations.
The stability in this figure follows the downward trend initiated after the government's announcement to place a new sovereign bond in dollars with a 6.5% coupon. During the week, the index went from 647 basis points to an intraday low of 613 on Friday, before closing at 627. This drop coincided with a strong increase in the parity of Argentine sovereign bonds, both those issued under local law (Bonar) and foreign law (Globales), indicating greater investor confidence in the country's repayment capacity and economic direction.
However, the 627-point level remains high compared to the regional average of 318 basis points. Countries like Colombia, with 276 points, and El Salvador, with 351, show lower risks. This intermediate position in the region highlights progress, but also the path ahead for Argentina to be seen as a low-risk borrower globally.
A high country risk raises financing costs not only for the state but also for companies and provinces, affecting investment and growth. Its recent decline represents a vote of confidence from markets in the nation's economic future.