Political Risk Latin America Blog @PolRiskLatam

President of Argentina Easily Prevails in Primary Election

Posted in News and Articles, Political Risk by politicalrisklatam on August 15, 2011

by Charles Newbery for The New York Times, August 15th, 2011.

President Cristina Fernández de Kirchner far outpolled her rivals on Sunday in Argentina’s first national primary, suggesting that she is likely to win re-election easily in the vote on Oct. 23.

To avoid a runoff, the winning candidate in October must get at least 45 percent of the vote, or at least 40 percent with a lead of 10 points or more over the closest contender. Early results in the primary indicated that Mrs. Kirchner, 58, had handily exceeded those thresholds, winning 49 percent of the vote. Ricardo Alfonsín of the centrist Radical Civic Union Party was second with 13 percent of the votes, while a former president, Eduardo Duhalde of a conservative faction of the Peronist Party, was third, with 12 percent.

Voting was mandatory, and people could cast their ballot for any candidate regardless of party affiliation. (continue reading… )

President of Argentina Easily Prevails in Primary Election


Default Risk Sinks on Paris Club, CPI Reform: Argentina Credit

Posted in News and Articles, Political Risk by politicalrisklatam on November 25, 2010

by Drew Benson for Bloomberg Business Week, November 25th, 2010.

Argentine bond risk is falling the most in the world this week after President Cristina Fernandez de Kirchner pledged to open talks with the Paris Club on $6.7 billion in defaulted debt and redesign the consumer price index.

The cost of protecting Argentine government debt against non-payment for five years with credit-default swaps tumbled 51 basis points, or 0.51 percentage point, in the five days through yesterday to 659, according to CMA data. The next-best performer among countries was Iceland, whose default risk sank 6.7 basis points.

Fernandez said Nov. 16 the Paris Club group of creditor nations accepted Argentina’s request to start talks to restructure the debt without International Monetary Fund oversight. The government also asked the IMF this week to help revamp the national consumer price index amid concern the data doesn’t reflect the true inflation rate.

“These are all very good steps and very clear signals about the direction in which they seem to be moving,” said Gunter Heiland, an emerging market debt portfolio manager who helps oversee more than $2.6 billion worth of assets, including an “overweight” Argentine position, at Greenwich, Connecticut- based fund Gramercy. “We find it very encouraging.” (continue reading… )