Good competitive position in Argentina's financial system, which provides low-cost and diversified deposit base funding; and High liquidity levels in both local and foreign currency. Very challenging economic conditions in Argentina, with a contracting economy, high inflation, and uncertainties about the sovereign debt restructuring exacerbated by the impact of COVID-19; and Transactional system with very low access to credit and lack of long-term funding base. The negative outlook for the next 12 months on Banco Galicia reflects the impact of the stressed economy and the sovereign's attempts to restructure its debt, exacerbated by the effects of COVID-19. This will continue to take a toll on the bank's asset quality, profitability, and potentially on solvency and liquidity given the effects of
