Day: March 12, 2020

Ministry of Finance bids two letters in Argentine pesos that can be adjusted to inflation

The Government is today placing new debt to meet maturities of more than 130 billion pesos ($ 2.1 bn) that operate between late March and early April. It offers a 90-day discount letter with a yield of approximately 39.5% and another note adjustable by the Reference Stabilization Coefficient (RSC) with an additional return of 2% at an eight-month term. The Government offers holders of the Dual Bond a redemption combo whereby they can make 75% with the CER and 25% with the discount letter.

Argentina Negotiates Restructuring of $70 Billion in Public Bonds

Argentina needs substantial relief in the restructuring of nearly $70 billion in public bonds. The global outbreak of the coronavirus could change the March 31 deadline for reaching an agreement with bondholders. The Argentinian Government reported that it cannot pay interest over the next few years and that the country could reach fiscal equilibrium between 2022 and 2023.

ADRs collapsed again, up to 15%

Shares of Argentine companies listed in New York collapsed again yesterday. YPF had an 11% loss and closed at $5.41. The Techint Group´s Tenaris, which manufactures steel pipes for the oil industry, fell 8% to $12.19, while Ternium, contracted 9.2% to $12.78 per share. Banco Supervielle fell 15% to $1.97; Banco Francés fell 14.4% to $3.8; Grupo Financiero Galicia fell 8.1% to $10.16, and Banco Macro fell 7.8% to $23.7. Mercado Libre fell 8.1% to $550.72 and Despegar, a virtual travel agency, fell 9.5% to $9.06.