As a proportion of GDP, total public debt has been on the rise since 2011, rising from 35.9% that year to 88.7% in 2019. The external debt (in foreign currency) in comparison to exports: was 110.2% in 2011, rose to 313.9% in 2019. Regarding reserves, external debt (in foreign currency) in 2011 represented 231.9%, last year it reached 556.1%.
The government will allocate about 35 billion pesos ($543 mn) to subsidize part of the payroll of companies affected by the quarantine. It will do so through the decree of necessity and urgency (DNU) 332.
In the stock market, the implicit exchange rates reached over 88 pesos while the wholesale dollar closed with a slight rise, due to the regulation of the Central Bank. The liquidation counted dollar (CCL) – obtained from the purchase and sale of shares or bonds to escape foreign currency – rose by 1 peso to 87.92 pesos, with which the gap with the official one climbed to 36.2%. In the Single Market and Free Exchange (MULC), the currency rose just six cents (0.1%) to 64.53 pesos. After increasing 3.6% during March, the tourist dollar – which carries the 30% surcharge for the Country Tax – appreciated four cents to 86.59 pesos. The BCRA’s International Reserves rose this Wednesday $4 million to $43.6 billion. In March, the monetary authority’s coffers lost $1.2 billion.
The government on Wednesday placed debt in the local market for 33,080 billion pesos ($523.3 mn) in a tender for Treasury Bills (LETES), allowing it to postpone maturities for July and December.
The S&P Merval index rose 3.9% to 25,324 units. The leading dollar bonds closed with increases of more than 10%, dollar securities under foreign law rose more than 7%, while bonds payable in pesos also experienced substantial increases of up to 5%. The dialogue with holders of $83 billion in debt to be renegotiated will continue this week and next. The country risk rose 3.7% to 3,943 units as global risk aversion deepened