The drop in GDP projected for this year, according to the IMF, will be approximately 4%. It all depends on the extension of the quarantine and how the Government resolve to restructure the debt.
The Argentine government yesterday formally requested the Paris Club to postpone for one year the payment of $2.1 billion due on May 5 and raised the possibility of facing a renegotiation of the agreement reached with that forum of countries in 2014.
The BCRA's International Reserves fell by $22 million to $43.87 billion. The cash dollar (CCL) rose 1.37 pesos, 1.3%, to 108.79 pesos; therefore, the exchange rate gap was 65.8%. The MEP dollar, which arises from the purchase and sale of bonds in the Buenos Aires stock exchange, rose by 2.06 pesos, 1.9%, to 108.32 pesos, leaving a spread of 65.1% leaving a spread of 65.1% with the price operated in the Single Market and Free Exchange (MULC).
Inflation accelerated in March by 3.3%, affected mainly by the rise in seasonal goods and services, to be above the estimates made by private analysts. The inter-annual variation, on the other hand, registered an increase in the Consumer Price Index of 48.4%.
Argentina’s $70 billion debt negotiations are entering the final act, with bondholders bracing for the worst as the South American country readies a restructuring deal already delayed by the coronavirus outbreak, which creditors fear will impose steep losses.
The country hoped a $2.1 billion lithium export market, according to a government presentation, up from $190 million last year when it shipped 50,000 tonnes of the white metal. Argentina’s push to grow lithium exports had already faced challenges, with rivals such as Australia and Chile developing deposits faster and a global price drop hurting investment.