The Argentine government announced today in the Official Gazette the creation of a special unit for assisting the Ministry of Economy in negotiations for the $ 46 billion debt with the International Monetary Fund (IMF). The so-called Temporary Special Executing Unit will be led by economist Emiliano Libman, and will aim to “elaborate the relationship strategy” with the IMF and links with diplomatic representatives and the private sector.
A change in Argentine government policy that increased export taxes on agricultural products from 6.7% to 12% spurred forward sales of feed grains for the 2019/20 marketing year (MY), reported the Foreign Agricultural Service (FAS), US Department of Agriculture (USDA). Strong global prices have helped mitigate some of the negative effects of the additional export tax. However, domestic use of corn may be lowering even as livestock production increases.
The Ministry of Economy will tender today two new series of Treasury Bills in pesos at Badlar rate (Lebad), one expiring at 120 days and the second one at 180 days, as part of its debt management scheme seeking longer terms and lower rates. Four tenders of Treasury Bills in Pesos were also confirmed on February 3, 11, 20 and 26 as part of the government plan to “normalise the local debt market.”
The added value of the Argentine manufacturing industry fell by 18.6% between 2011 and 2019, affected by cycles of marked recession in Brazil, closing and opening of imports and release and control of the exchange system, according to a study by IERAL Fundación Mediterráneo. The gap with the Agriculture and Livestock sector was 25.4 points, since the latter registered a positive variation of 6.8% in the period.
Argentina Foreign Minister Felipe Solá confirmed that Donald Trump’s administration will exempt Argentina from the tax of up to 25% on steel and aluminium imports. He praised the work of Argentine embassy in the USA toward this aim. Australia, Canada and Mexico were also exempted from the additional aluminium tariffs and Brazil, Canada, Australia, Mexico and South Korea, from the steel tariffs.
Argentine Economy Minister Martín Guzmán arrived in New York to hold a series of meetings aimed at accelerating the renegotiation of external debt. His agenda for this week includes a presentation to the Council of Americas, and meetings with US Treasury officials, and with representatives of the International Monetary Fund.
Veteran restructuring lawyer Dennis Hranitzky is building up an Argentina bondholder group of about 20 funds focused on 2005 and 2010 debt exchanges notes. Hranitzky, who helped hedge fund billionaire Paul Singer win a 15-year bond battle against Argentina, joined Quinn Emanuel Urquhart & Sullivan last week. Argentina’s gross debt load stands at $332 billion, including loans from the IMF.