Argentina facing stiff challenge in efforts to enter international financial markets

Argentina is facing a severe challenge in attracting investors amid global economic instability, volatile financial markets and tumbling oil prices, a report says.

"The deterioration of the international context impacts the region, including the Argentinean government's strategy to minimize the impact of its macroeconomic reforms," economic consulting firm Ecolatina said in a report on Friday.

The Argentinean government has rolled out a series of measures to improve investment incentives, including an infrastructure plan which would require long-term, low-interest international loans.

It has also sought to remove internal restrictions on foreign exchange operations, clarify rules for the private sector, boost the profitability of the agricultural sector and resolve Argentina's conflict with vulture funds in the United States.

"Finding financing on capital markets and attracting foreign investors would directly help (Argentina) to overcome its own contraction," explained the firm, adding that gaining access to foreign exchange markets could strengthen the country's internal reserves.

Such extra financing could also help make up some of the fiscal deficit currently affecting the country, Ecolatina reported.

According to the consultancy, the speed at which the Argentinean economy will pick up largely depends on how much investment it secures in the second half of 2016.

"It is probable that Argentinean authorities will have to rethink their strategy. The low price of oil has complicated matters for energy companies and exporting countries," said the report."The appreciation of the dollar has also generated additional exchange pressures for emerging economies," it said. Endi