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Argentine shares jump on news of Paris Club deal
May 29, 2014 / 4:30 PM / 4 years ago

Argentine shares jump on news of Paris Club deal

BUENOS AIRES, May 29 (Reuters) - Shares in Argentine banks and state-run oil firm YPF jumped on Thursday on news of the country’s landmark deal with the Paris Club on repaying overdue debt that helps Argentina put its 2001-2002 sovereign default behind it.

Banco Macro shares listed in New York shot up 7.3 percent as investors registered satisfaction with the deal while Grupo Financiero Galicia shares rose 6.7 percent and YPF was up 3.1 percent.

The MerVal index was up 2.18 percent

“It’s natural that Argentine shares are rising because the Paris Club news is positive and will open up the possibility of new capital for the economy and access for companies to cheaper credit,” a trader in Buenos Aires said.

Argentina reached an agreement on Thursday with the Paris Club of creditor nations that should open up new sources of international financing, needed for example to develop its vast shale resources. Argentina has been virtually shut out of capital markets since its default. (Reporting by Jorge Otaola and Sarah Marsh; Editing by Grant McCool)

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