Qualifiers stirred the default ghost and the country risk climbed to 1,883 points

While the Government appeals to the populism that so much denounced with a series of measures whose axis is to put more money in the pockets of the people and moves the first pieces of his Cabinet to arrive better stopped at the October elections and go for an epic comeback The beating he received in the PASO, the risk rating agencies agitate the phantom of the Argentine default and give the local economy a new knockout punch.

The decision of Fitch and Standard & Poors agencies to cut Argentina's debt note on Friday fueled uncertainty and triggered a strong outflow of investments in Argentine assets. Local shares listed on Wall Street lost up to 16% of their value yesterday, while the collapse of dollar bonds exceeded 6% in the case of Bonar 24, the most traded Argentine title for large funds that They operate in New York.

Alberto's comments about a possible restructuring did not help

The distrust of Argentina's payment capacity, fueled by the rating agencies at the end of last week, left the possibility for our country of financing in international markets completely closed. It also complicates – and much – the picture for local businesses.

The country risk index prepared by JP Morgan soared 230 basis points yesterday, to 1,883 units.

The full impact on the Buenos Aires Stock Exchange is expected today, which yesterday did not work because it was a non-work day, although on Friday the first signs had already been seen: a 2% drop for S&P Merval and losses of up to 8.4% between Dollar bonds.

Fitch and S&P believe that the deterioration generated by the strong devaluation of last week in Argentina's already fragile economic situation increased the likelihood that the country will not be able to meet its debt commitments next year.

The cost to secure the Argentine debt (CDS) for five years rose more than 500 basis points yesterday compared to Friday. Calculations on the price of insurance assign a probability of default of Argentine sovereign debt of 77 percent.

The comments of Alberto Fernández, the candidate for president for the Frente de Todos, to the Clarín newspaper over the weekend regarding his intention, if he consolidates his victory in October, of sitting down to negotiate with the creditors of the Argentine debt "one for one "a possible restructuring, they did not help.

Argentine ADRs collapsed yesterday. The fall on Wall Street was led by the actions of the banks: Supervielle fell 15.8%; Grupo Financiero Galicia sank 15.7%; Macro lost 15.3%; and Banco Francés finished 14.4% down.

Behind the energy companies, with 12% setbacks for Edenor, 9.6% for Transportadora de Gas del Sur and 7.4% for YPF.

The data that worried local analysts, beyond the percentage of the fall, is that the decline in local papers in New York was accompanied by a significant turnover. The banks that led the podium of losses operated double their usual amount.

Among Argentine dollar bonds, the value of Bonar 2024 collapsed 6.3%, bringing its return rate to 40.5 percent. The 2037 Bonar and the Discount fell 1.5% each.

Nor do they seem to convince investors of the latest government measures.

The market reaction forced a denial by one of the main economic referents of the Frente de Todos, which still refuses to confirm what its government team will be in case of winning in October. "We do not plan to restructure the debt," Guillermo Nielsen told the Bloomberg agency.

Nor do investors seem to convince investors of the latest populist measures taken by the Government of Mauricio Macri or the changes in the National Cabinet, which for now were limited only to the Treasury Palace: Nicolás Dujovne left and Hernán Lacunza enters today.

For now, the eyes will be on the replica of yesterday's fall of ADRs and bonds listed on Wall Street in the local market, although the center of attention will go through the impact on the dollar and the reaction of the Central Bank in case of a shot up.