Argentine economy underwent a process of production concentration during Mauricio Macri's government, according to a report by the National Institute of Statistics and Census (Indec). The top 500 Argentine companies went from applying 18.3% of gross value added, during 2015, to 20% during 2018. They also registered a growth in foreign participation whose capital jumped from 75.3% to 78.6% in the same period, while there was also deindustrialization.
New York federal judge Loretta A. Preska dismissed Aurelius Capital’s $84 million lawsuit accusing the Argentine government of failing to make agreed-upon securities payouts, but gave the hedge fund a chance to amend its claims. Investors seek to prove that the country distorted growth statistics in 2013 to avoid paying the £3 billion GDP Coupon. It was not done because the country grew below 3 percent.
The economy ministry authorised financing worth 5.6 billion pesos ($94 million) for the provinces of Chaco, Chubut, Tucumán, Río Negro and Santa Cruz, and 2bn pesos to the province of Chaco where the local government has faced difficulties to pay salaries for months and forced to underspend on some budget items. The situation is also affecting their capacity to move forward with public works projects.
S&P Global Ratings raised its debt grade for Argentina to 'CCC' from 'CC', acknowledging the agency made a mistake. After bumping the rating up a notch from 'SD' on December 30, 2019, “we identified that we had misapplied our criteria which we are now correcting,” S&P said in a statement. The credit outlook remains negative which “reflects the prominent downside risks to timely and full payment of debt over the short term".
Argentina's government issued 17 billion pesos ($284.2 million) in local currency-denominated Treasury Bills on Tuesday. About 10 billion pesos in 50-day notes known as "Letes" were issued at an interest rate of 40.59%, while about 7 billion pesos-worth of 140-day "Letes" had a rate of 41.30%. Also on Tuesday the Ministry of Economy ordered the expansion of $ 3.24 billion of the issuance of Letes in dollars to meet debt maturities.