After the agreement between Government and laboratories, the prices of medicines began to show increases that started at 1.9% and reached 10%. Generic remedies rose by 2.0% and brand name remedies by 2.3%. Permanent treatments increased by 2.2%. There could be adjustments to remain below the CPI throughout 2020, according to a survey by the consulting firm Elypsis.
ADRs dropped 8%: Banco Macro led the retreats with -8.1%. Then, BBVA assets (-7.6%); Galicia (-7.4%); and Ternium (-6.9%) followed.
S&P Merval fell 4.2% to 35,222.43 units, where YPF shares fell 5.5% following adverse accounting results and the collapse of oil. In the fixed-income segment, the first dollar-denominated bonds fell to 7%, and country risk exceeded 2,400 points, 3.4%, its highest level in the last six months. The Buenos Aires Stock Exchange opens with a 12.7% collapse.
Between December 10th 2019, and March 3rd 2010, the monetary base grew by almost AR$100 billion ($1.6 billion) to AR$1.74 trillion ($27,8 billion), with a year-on-year growth rate clearly above 40%. Reserves cover 80% of total financial liabilities.
The government enters the final stretch of the debt restructuring process; Argentina is not in a position to pay this year’s capital maturities. One of the central objectives is to postpone this year’s deadlines for some $40 billion and to try to restructure in stages over the period 2021-2023 the remaining external obligations.
The Argentine country risk index reached 2,788 basis points, its highest level since 2005, affected by heavy losses in oil prices and sovereign bond yields. Within this framework, Argentine shares listed in New York lose up to 15% in previous negotiations, the papers that fall the most are those of Banco Macro (15.13%), YPF (14.38%) and Grupo Financiero Galicia (10.56%).