Argentina Remains Outside MSCI Radar, Debt Renewal a Key Challenge: What Investors Need to Know
Buenos Aires – Argentina will remain outside teh scope of potential upgrades by MSCI (Morgan Stanley Capital International) for now, a development economists warn could complicate the nationS debt management strategy. Economist Juan Carlos de Pablo cautioned that this exclusion presents a “problem” for those anticipating swift improvements in Argentina’s market standing [[1]].
The Implications for Debt & Risk Country
De Pablo directly links MSCI’s decision to Argentina’s “Risk Country” – a key indicator influencing the interest rates the nation must pay on it’s debt. He questions the necessity of returning to international markets, stating the primary driver is to “renew the debt maturities generated by the fiscal deficit of the previous governments” [[1]].Looking Ahead to 2026
Despite the current setback, De Pablo believes improvement in MSCI’s index is achievable by 2026, contingent on the Milei administration’s commitment to fiscal discipline and managing debt interest payments. He emphasizes the economic team faces a significant challenge: convincing debt holders to accept alternatives to immediate cash repayment [[1]]. MSCI reviews this index annually, making next year’s assessment crucial.
Positive Economic Signals Amidst Challenges
The news arrives alongside positive economic data. Argentina’s consumption rose by approximately 11%, and the GDP increased by 0.8% in the first quarter compared to the last quarter of the previous year [[1]].
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