In the wake of Argentina’s announcement that it will abandon negotiations on Mercosur agreements, the Brazilian government wants to suggest changes in the bloc’s operating rules to make commercial deals feasible without the participation of the neighboring country.
Also conditioned by the decline of the ” cash with liquidation” (CCL) dollar, the S&P Merval index of Argentine Stock Exchanges and Markets (BYMA) fell by 1.1%, to 32,287 units, after the three main groups of bondholders that concentrate close to 50% of the holdings of the bonds that the government intends to restructure rejected the offer for the debt. Argentina’s country risk climbed 2.7% to 3,614 units as dollar bonds ended in negative territory, PARY plunged 8.6%.
The blue dollar rose again on Monday, reaching 120 pesos after the Central Bank limited the purchase of dollars in alternative markets to those who have agreed to buy foreign currency for treasury and to companies with subsidized loans. The liquidation counted dollar (CCL) fell by 1.9% to 112.56 pesos. The spread with the wholesale quotation reduced to 68.2%.
VAT collection fell in April by 27% in real terms, while income tax collection fell by 31% in real year-on-year terms. The impact is very sharp: these two taxes account for 70% of the total amount collected in the country.
Aeropuertos Argentina 2000 S.A. announced the results of its offer to exchange any and all of its outstanding 6.875% Senior Secured Notes due 2027 in the original aggregate principal amount of $400 million for newly issued 6.875% Cash/9.375% PIK Class I Series 2020. Additional Senior Secured Notes due 2027, and solicitation of consents to certain proposed amendments to the indenture governing the Existing Notes. On May 1, 2020, $340.9 million aggregate original principal amount of Existing Notes, representing approximately 85.23% of the total original principal amount of the Existing Notes, had been validly tendered for exchange and not validly withdrawn, as confirmed by the Information Agent for the Exchange Offer.
