Argentina’s country risk hits its highest level in 11 months
The Milei administration’s economic challenges have begun to outweigh a favorable international backdrop as Argentina approaches the pre-election period La entrada Argentina’s country risk hits its highest level in 11 months se publicó primero en Buenos Aires Herald .
As of Tuesday, Argentina's country risk has reached its highest level in 11 months, according to JPMorgan's EMBI+ index. This increase is primarily due to two main concerns for investors in Argentine government bonds. First, the sources of financing for President Javier Milei's administration to meet next year's debt payments remain uncertain, despite his claims of a US$125 billion reserve.
The government will face debt maturities totaling nearly US$25 billion in 2027, including US$12 billion owed to private bondholders and US$7.5 billion to the International Monetary Fund (IMF). Second, there is growing uncertainty about Milei's chances of winning reelection in the October 24, 2027 election. The most notable indicator of these concerns is the continued rise in Argentina's country risk, which stood at 684 basis points at Tuesday's close, up nine points from the previous close or 1.3%.
Although the index briefly surpassed the 700-point threshold early in trading, it remained at its highest level since November 2025. Analysts attribute the rise in country risk to the market pricing in Argentina's ability to secure the necessary dollars in 2027, rather than to its fiscal surplus. The decline in the yield on 10-year US Treasury bonds, which should have benefited emerging-market debt, has not materialized due to concerns over Argentina's financing strategy.
Written by urgent.news from Buenos Aires Herald's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Argentina’s country risk hits its highest level in 11 months buenosairesherald.com
