Day: January 10, 2020

Central Bank begins fintech services regulation

Argentina’s central bank (BCRA) established that Payment Service Providers (PSP) or Fintech should deposit their clients’ funds in demand accounts in pesos in financial institutions of the country, and those funds should be available immediately upon request. Customers of these virtual wallets can also apply their funds to investments in common money funds.

Argentina pledges to continue Yaciretá expansion works

Argentina ratified its decision to continue the expansion of the Aña Cuá hydroelectric dam, during a meeting between the Energy Secretary, Sergio Lanziani and the executive director of the Yaciretá Binational Entity (EBY), the former President of Paraguay Nicanor Duarte Frutos. The contracts for this work were signed at the end of October with the German company Voith, which will allow a 9% expansion of Yaciretá’s electricity generation.

Central Bank cuts benchmark interest rate to 52% from 55%

Argentina’s central bank (BCRA) has decided to cut its benchmark interest rate (Leliq) to 52% from 55%, the third such cut in less than a month, and part of an effort to revive Latin America’s No. 3 economy. The first one was on December 19, when it brought the rate to 58% from 63% inherited from the previous administration, and the second, on December 26, when reduced to 55%.

Buenos Aires Province debt talks slam one of world’s best bonds

Buenos Aires Province’s plan to negotiate with creditors debt payment due this month has torpedoed one of the world’s best bond rallies. The province’s $500-million of notes due in January 2021 tumbled 5.3% Wednesday to $0.64, their worst day in more than four months. The securities had returned 54% from the end of August through Tuesday, putting them among the top performers in emerging markets.