Argentine government ratified that it will use the loans for $6 billion approved by the Inter-American Development Bank (IDB), the World Bank and CAF, for infrastructure works and development programs. President Alberto Fernández will accept these loans approved during the government of Mauricio Macri “for their low cost of financing comparing to what the country could get in the markets,” official sources explained.
Argentine bonds dipped on Wednesday as the provincial government in Buenos Aires was forced to extend until Jan. 31 a deadline for creditors to agree or reject a plan to delay a $250 million bond repayment originally due on Jan. 26. Prices for Argentina’s over-the-counter (OTC) bonds were down on average around 1.3%, while Buenos Aires bonds fell across the board, led by a 3.5 point drop in the 2021 bond.
Argentina national public sector registered in 2019 a primary deficit without extraordinary income of ARG$ 208.8 billion ($3.475 billion), equivalent to 0.96% of the Gross Domestic Product, said the Ministry of Economy. Computing extraordinary income, the deficit was ARG$ 95.122 billion (0.44% of GDP). The financial deficit amounted to ARG$ 933 billion ($15.32 billion), a figure equivalent to 4.28% of GDP. Sovereign debt interest payment amounted to 18.4% of the total public sector income.
Argentina’s state energy company YPF issued debt of $164 million via two peso-denominated negotiable debt obligations, a 12-month fixed rate dollar series, and the reopening of Class XLVI bond maturing in 2021. “The result of the tender was excellent, with a great response from the market that allowed the company to extend the terms at a competitive financing cost,” YPF said.