The Government submitted to the Securities and Exchange Commission (SEC) its proposal to restructure the external debt of 21 eligible bonds denominated in US dollars, euros, and francs, with foreign legislation, 17 issued in the last four years. The stock of debt to be restructured is worth $66.24 billion, of which $41.55 billion issued in the previous four years. Argentina will then have until May 21 to cover the liquidation of April 22 of Global 21, 26 and 46 for about $503 million. One day later, the country will go into default. The official intention is that before that date, they cover the negotiation.
The price of West Texas Intermediate (WTI) crude oil with delivery for next month, which expires this Tuesday, fell 300% and closed in negative to $-37.63 per barrel. However, WTI futures with delivery in June, which expires on May 19, had a smaller drop and stand at around $21 per barrel. Deliveries from September onwards are already above $30 per barrel. The U.S. benchmark index is now disengaged from the Brent, the European oil benchmark, and the gap between the two has reached its highest level in a decade. With an oil market in a tailspin, demand for ethanol fell and the Chicago corn price, for its most active contract, hit a low of $3.13 per bushel, the lowest since 2009.
On Monday there was an agreement between the Patagonian oil unions and the Chamber of Hydrocarbon Exploration and Production (CEPH) to reduce by just under half the wages of workers who remain in their homes after the quarantine. The licensed workers, who were receiving net payments of 90 thousand pesos ($1,365), will receive during the quarantine between 42 and 45 thousand pesos ($637 to $683).
The 4,400 employees at the Toyota terminal will receive a payment at the end of April, equivalent to 70% of the gross assets for March, which represents 90% of the net assets for April. When the quarantine declared in mid-March, the company provided a payment of 30,000 pesos ($500) so that employees could have additional money to supply themselves with commodities in the face of the emergency without having to wait for the sum of the salary at the end of the month.
The Liquidity Counted Dollar (CCL) registered its second consecutive increase, rising 2.6% on Monday to 105.27 pesos, the gap with the wholesaler was close to 60%. More pronounced was the advance of the dollar stock market, which rose 4.4% to 104.23 pesos, leaving a spread of 58% against the quote that operates in the MULC. In the marginal segment, meanwhile, the blue dollar closed stable at 105 pesos. In the Single and Free Market (MULC), the currency rose 12 cents to 65.98 pesos, a value set by the Central Bank. The ROFEX futures market traded $158 million. BCRA’s International Reserves closed at $43.82 billion.
The S&P Merval index of the Buenos Aires Stock Exchange closed on Monday with a rise of 2.2% to 30,535.73 units thanks to the boost of the Liquidation Counted Dollar (CCL), which climbed almost 3% amid the dollarization of portfolios because of an accelerated monetary expansion to finance the aid for the coronavirus. Sovereign bonds closed with an average improvement of 2%, led by more liquid dollar issues.
The work, which was contracted by the Matanza Riachuelo Basin Authority The transitory union formed by the companies Panedile, Esuco and Ecopreneur confirmed that it would begin construction of a treatment plant for tannery waste in the Industrial Tannery Park of Lanús. The work will start in the second quarter of 2020, will employ approximately 300 people and the work will take 23 months to complete.