Banco Provincia announced a new line of credit at 24% per year in pesos for micro, small and medium enterprises. It also includes health companies. It is an exclusive overdraft agreement with a rate of 24% and a term of 90 days for those who have a credit agreement with the bank.
So far in 2020, Brazil was the G-20 country whose currency depreciated the most against the dollar: the real dropped by about 25% in the year. This situation may add a new problem to the Argentine economy, since the devaluation of the neighbouring country reduces the competitiveness of local goods, precisely against the essential partner.
The World Bank approved $300 million in budget support for Argentina to strengthen the social protection system and minimize the impact of the crisis on the most vulnerable sectors. The multilateral agency will make two disbursements: one in 2020 for $165 million and another in 2021 for $135 million.
GDP fell 2.2% announced on Wednesday INDEC, so the accumulated fall during 2019 was 2.1%. The collapse of 5.8% in the first quarter explained most of the recession. According to data released by INDEC, the only component of the product that grew during 2019 was the exports, which climbed 9.4% compared to 2018. Imports plummeted 18.7%, private investment fell 15.9%, and private consumption fell 6.4%. Public spending contracted, although only by 1.5%.
The most significant increases were recorded by the shares of YPF (18.43%), Pampa Energía (18.05%) and Cresud (14.5%) in a round where no paper ended with a negative sign. The shares thus coupled with the technical rebound of the ADRs, which advanced to almost 27%. The fixed-income segment continued to be concerned about the debt restructuring process, whose latest signs are leaning towards a more robust offer. In this regard, the Discount under Argentine law fell by 4.7%, Bonar 2020 decreased by 5.8%, and Bonar 2024 lost 3.7%.