The Emergency Assistance Program for Work and Production (ATP) launched credits at a rate of 0% for single-owners and self-employed, with a maximum limit of 150 thousand pesos ($2,280). The National Fund for Productive Development (FONDEP) will receive from the Central Bank of Argentina (BCRA) 11 billion pesos ($167 mn) to cover the Total Financial Cost of the loans at 0% rate. In turn, the Argentine Guarantee Fund (FOGAR) will be able to guarantee up to 100% of the zero rate loans to single-owners and self-employed workers, without requiring counter-guarantees. Therefore, the BCRA will transfer to FOGAR a direct contribution of 26 billion pesos ($395 million).
The ceramic floor and wall tile industry, whose locally produced companies directly employ about 4000 people, is on the verge of collapse. They have, as a whole, an installed production capacity of 93 million mts2 of materials per year. Unfortunately, the projection for this year indicates the possibility of delivering 50.9 million mts2 of products, that is, a level of use of the installed capacity of only 55.8% that is unsustainable.
72% of the companies registered a drop in sales due to the measures adopted to face the coronavirus pandemic, according to a survey by the Center of Studies of the Argentine Industrial Union (CEU). The study, conducted on 607 companies of various activities, regions and sizes between April 13 and 15, showed losses of 60%. As for the projections on personnel salaries, 87% of the companies have severe difficulties in paying them; 64% say they will not be able to pay them and another 23% that they will only be able to pay approximately half, the report added.
The U.S. West Texas Intermediate (WTI) barrel with contract expiration in May lost more than 18.7% and stood at $14.84 per unit in the first Asian operations. In the case of Texas, with maturity in June, the fall is much smaller, 5.75%, to $23.59. The North Sea Brent, of reference in Europe, fell 1.5% to $27.64 per barrel.
Following the first letter from the Government, Argentina’s creditors counter-propose to Argentina to lower the capital withdrawal to 5% for the bond due in 2030 and zero for the longer ones that go up to 2047. They also said that what the country saves by unpaid interest until 2023, it could pay at the beginning (upfront payment). They said that if these modifications and other counteroffers take place, positions would be quite close.