In the first 25 days of March, the monetary base expanded by AR$489,754 million ($7.6 billion), an increase of 22%. Thus the base exceeded, for the first time, AR$2 trillion to a total of AR$2,206 trillion ($34.6 billion). This is a monetary expansion rate of 66.22% year-on-year.
President Alberto Fernandez will ask the International Monetary Fund (IMF) to enable the line of financing called Special Drawing Rights (SDR); to alleviate the impact of the health emergency caused by the Coronavirus. The IMF line of credit could be between $3 billion and $3.5 billion to support the real economy.
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 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 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.