Pan American Silver announced that it is temporarily suspending its operations in Argentina, including the Manantial Espejo mine, in order to comply with a mandatory national quarantine in response to Covid-19. The company is also suspending supply deliveries and personnel transport at its San Vicente operations in Bolivia to comply with a mandatory national quarantine.
Argentina received $15 million from the development bank FONPLATA for the construction of 11 Modular Emergency Hospitals, which will have 760 beds to attend the emergency caused by COVID-19.
As part of the battery of measures designed to cushion the drop in activity caused by the coronavirus, the government announced the creation of an emergency family income, to deliver in April for 10,000 ($157) pesos, which could be repeated in May if the isolation continues. It will aim at workers between 18 and 65 years old, independent, non-formal and mono-tributors of Categories A – average income of 17,400 pesos ($273) per month and B – average salary of 26,100 pesos ($410) per month.
Argentina’s country risk shot up 11.2% to 4,519 basis points, according to the J.P. Morgan index, and most Argentine bonds trading on the New York Stock Exchange were down. Local bonds traded on Wall Street fell up to 4% in Bonar 2024; 3.9% in Bonar 2037; and 1.9% in the Hundred Year Bond.
The company most hit was Despegar, dedicated to the sale of air tickets and tourist packages, with a drop of 269% on the day and 57.3% on the month. Given the fall in agricultural commodity prices, the company Cresud, Argentina’s leading producer of essential farm goods with a growing presence in Brazil, was also hit with a 13.1% drop. In third place was Ternium with a fall of 9.4%, while the only stock with a rise was Mercado Libre, with an advance of 1.1%.