Liga Bioenergética (The Bioenergetic League) warned about the “very serious situation that the biofuels industry is going through”, a production that allowed to avoid imports for more than $ 27 billion in the last ten years. The installed capacity of biodiesel in Argentina is greater than 4.5 million tons per year and more than 50% is currently inactive, which puts 10,000 jobs in ten provinces at risk.
President Alberto Fernández travels to Israel on his first official visit as head of state to participate this week in the International Leaders Forum in Commemoration of the International Holocaust Remembrance Day and the Fight against Anti-Semitism. About 40 world leaders and the vice president of the United States, Mike Pence, will attend this meeting. Governor of Buenos Aires province Axel Kicillof is also part of the Argentine delegation.
International Monetary Fund Managing Director Kristalina Georgieva said in Davos the lender has had “very constructive” exchanges with Argentina’s new government and would do whatever possible to assist the indebted country. Argentina owes the IMF around around $44 billion and the severe economic crisis since last year has forced it to enter negotiations with creditors to restructure around $100 billion of sovereign debt.
Argentina exported in the 2018/19 campaign about 11.3 million tons of wheat, which allowed a foreign exchange income of $2.5 billion, the highest amount in the last 7 years, according to a report from the Rosario Stock Exchange which analyses the foreign trade data provided by the National Institute of Statistics and Census (Indec). The average export price (FOB) was $220/t, thus exceeding $201/t and $180/t from the previous two periods.
Buenos Aires, the most indebted, is already seeking reprofiling bonds maturing this month, but there are several governors who try to renegotiate with their creditors. Chubut, Chaco, Jujuy and Neuquén have to solve the problem soon. Córdoba bonds expire in 2021, Mendoza and La Rioja in 2022, and Entre Ríos in 2023.
Argentina’s Chubut province bonds due 2026 plunged 8 cents to 63.3 cents on the dollar on Friday after its economy minister Oscar Antonena proposed reducing coupons and suspending principal payments for four years on $650 million of the overseas bonds. Out of Chubut’s $855 million total debt, around 80% is held in international bonds.