THE LAW REVIEWS
As of December 2019, a new political administration took office. The new government implied a complete change in the political and economic direction.
The new macroeconomic scenario was marked by a new default in external sovereign debt (country risk at its highest peak since 2005), high inflation (50 per cent per year), recession and almost no growth.
Therefore, the economic instability, expectations and uncertainty about future political and economic decisions have caused investors to look at Argentina with higher distrust, resulting in a significant decrease in transactions in the M&A market. On top of that, a worldwide crisis caused by the covid-19 pandemic made Argentina impose mandatory lockdown except for those activities considered essential, consequently affecting the ongoing
Argentina finally managed in late August 2020 to sign the restructuring of its foreign law sovereign debt. This was a step in the right direction. In addition, the initial recovery and the need for Argentine commodities (mainly soybean) and gradual reopening of the global economy are expected to help the country’s economy recover despite its fragile political situation…
Keywords: Mergers & Acquisitions
Reproduced with permission from Law Business Research Ltd. This article was first published in December 2020. For further information please contact Nick.Barette@thelawreviews.co.uk