Market Crisis Undermines Argentina's Fiscal And External Accounts

• A renewed crisis of market confidence in Argentina is generating significant risks to the country's fiscal and external accounts.
• The expectation is that the fiscal deficit will widen over the coming quarters, as the government attempts to mitigate the impact of a significant depreciation of the peso and anticipated a spike in inflation.
• Fitch also believes that Argentina's external accounts will be under tremendous pressure as investor concerns over policy direction and fiscal sustainability will severely restrict its access to capital markets.

(Source: Fitch)