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Scotiabank Expect Further Rate Increases

ARGENTINA

Scotiabank on Argentina:

  • The BCRA finally raised its key Leliq rate by 200 bps on Jan. 6 to 40% from 38%, where it had been on hold since Q4-2020. Scotiabank expect further rate increases as negotiations proceed with the IMF and under an eventual program.
  • But Min. Guzman’s presentation on Jan. 5 implied positions remain far apart and talks may not conclude by the March due date on current debt service owed to the Fund.

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