In an unprecedented milestone for the current administration, the country risk of Argentina plummeted this Friday July 10 to reach 402 basis points, consolidating a new historical low under the management of Javier Milei. This indicator, developed by JP Morgan, broke all forecasts by reaching levels not seen since April 23, 2018 (a floor not observed for more than six years). The contraction of this sovereign index has already accumulated an impressive 5.4% so far in July, reflecting a deep and accelerated macroeconomic cleanup.
The drop in country risk is not an isolated event, but rather the direct consequence of an relentless financial strategy. The market reacted with euphoria following the recent official presentation of the comprehensive financial program planned for the 2026-2027 period, a medium-term plan that provides a predictability absent for decades in the country.
In addition, there is the significant impact of the disbursement of 4.2 billion dollars executed by the Treasury to settle commitments with private bondholders, an action that, according to experts, has effectively "cleared the ghosts of financial fragility in the short term".
Optimism strongly transferred to the boards of Wall Street, where Argentine stocks experienced a true festival. Local assets in the form of ADRs showed spectacular returns led by the banking sector:
BBVA (BBAR) led the gains with a jump of 9.3%.
Grupo Financiero Galicia (GGAL) recorded an increase of 9% (in some records up to 8.5%).
