Gustavo Bazzan
03/09/2020 - 10:23
- Clarín.com
- Economy
- Economy
A black Monday is happening around the world that was already announced since Sunday afternoon began to see the collapse of oil prices , followed by sharp falls in the Asian stock markets, then Europe and now, by the time zone , from America.
The sequence of this collapse -historical because of its depth- could begin when the first and disturbing news about the coronavirus in China appeared. The risk of epidemic or pandemic also infected the economic indicators.
All 2020 growth projections, globally, were reset down. The prices of raw materials and financial assets are adjusting to what is expected now: economic cooling globally.
The oil slump reflected until last week an adjustment to lower global demand: lower activity, less energy consumption. On Friday, a break between Saudi Arabia and Russia - which did not agree to reduce oil extraction to sustain the price - further blackened the picture.
This crisis finds Argentina in an extremely fragile position. And today's first prices confirm it. The country risk jumps more than 10 points to 2700 points as a result of the significant fall in bonds issued in dollars. The prices of agricultural commodities accompany the fall. This means less dollars for exports. A problem when thinking about an offer to the creditors of the debt.
It is expected that the collapse of the actions will also be very important.
The issue of bonds is central, because at very low prices perhaps the so-called vulture funds may appear, which would be involved in their own way in the negotiations to restructure the debt that the Government is carrying out.
In short, it is in the presence of a perfect storm, and Argentina, as usual, is outdoors.