FTSE Russell could strip Argentina stocks of frontier market status

Argentina will be dropped from the FTSE Russell's frontier market index from September unless it eases capital controls, the index provider said on Wednesday during its interim review of global equity markets. Faced with an economic and debt crisis and a steep drop in the peso currency, Argentina imposed capital controls last year, with the Central Bank later opting to keep them in place to help the country manage its financial crisis.

Argentina expected to make a symbolic US$ 225 million interest payment

Argentina will layout “guideposts” this week for a restructuring of its nearly US$70 billion in foreign debt, but the country is not yet ready to make a formal proposal to creditors, according to political sources in Buenos Aires. The government of president Alberto Fernandez had initially set the end of March as a deadline for reaching a deal with bondholders but has faced delays in the process, many due to the coronavirus pandemic. Despite the situation, Argentina could make a US$ 225 million interest payment due on Tuesday while trying to keep creditors at ease.

Argentina cancels energy infrastructure plans

Argentina has postponed or canceled two of its biggest energy infrastructure projects as policymakers debate measures to protect the country’s oil industry. The tender to build the central gas transport system, a gas pipeline meant to boost capacity from the Vaca Muerta unconventional formation, has been postponed for a third time. Concurrently, the tender to build the Río Diamante-Charlone transmission line, a US$560mn project, was cancelled.