Wheat exports in the first quarter of 2020 rose by almost 40% compared to the same period last year. Argentina placed overseas 6.16 million tonnes, up from 4.42 million tonnes in the same period the previous year. By April, wheat exports would stand at 265,000 tons, based on waiting and coming ships. Regarding negotiated prices, the predominance of values were around 170 dollars per tonne.
Given the difference between the government’s offer and the desire of the funds that have an investment buried in Argentina close to 70 billion dollars, the government offer that the Securities Exchange Commission (SEC) will publish today establishes $0.38 for each bond offered by Argentina vs $ 0.55 that Wall Street investors are demanding. It is the distance between both trenches and could lead to a new default for Argentina. The key to the deal is in the NPV: if the Argentine government does not stretch from 38 cents to 50 cents on the dollar, the bondholders will consider filing a default suit in New York courts.
The International Reserves of the Central Bank of Argentina (BCRA) fell for the second consecutive day. The decrease was of $14 million, for which the monetary authority currently accumulates $43.8 billion. On the other hand, the liquid dollar (CCL) sank by 6.1% to 102.10 pesos, so the exchange rate gap reduced to 55.3%. The MEP dollar (for the purchase and sale of bonds on the Argentine stock exchange), fell by 4.6% to 103.37 pesos, leaving a spread of 57.24% with the quotation traded on the MULC. The BCRA absorbed 13 billion pesos, which is added to the nearly 171 billion pesos from the previous day’s auction, to slow the advance of the dollar in the stock market segment.
The leading S&P Merval de Bolsas y Mercados Argentinos (BYMA) index plunged 6.1% to 30,077.22 units, due to the substantial fall of the liquid dollar and the MEP. Argentina’s country risk, as measured by JP Morgan, remained almost stable, falling 0.2% to 3,987 points.
They will try to change the structure of the debt, with a grace period of three years to begin paying from 2023; at an interest rate of 0.5%, which would grow to sustainable levels; a capital removal of $3.6 billion, 5.4% on the stock owed and a reduction of interest payments of $37.9 billion, equivalent to a withdrawal of 62%.