The main risk is not the default, but that failure to accept the proposal will generate a new wave of lawsuits in the courts of the Second Southern District of New York. A new trial for the defaulted bonds would have a short duration, and the country would be forced, by the American laws, to pay the totality of the debt that today must negotiate more interests and punishments and without removals. This $68.8 billion would be transformed by legal magic into more than $80 billion of debt. Everything will depend on the willingness of the creditors to wait or not for Argentina amid an international financial catastrophe of epic dimensions.
After two months of quarantine, the car dealers of Capital Federal will be able to reopen to the public from Thursday; the dealers do not want to waste the gap between the official exchange rate and the blue that exceeds 80%. The price of new cars are fixed in pesos at the value of the legal dollar and buyers sell their dollars in the parallel market, the gain in dollars in the acquisition of a vehicle is 40%. Models are starting at $6,000.
YPF Luz, the subsidiary of the oil company YPF dedicated to electricity generation, presented the results of the first quarter of 2020, with a total sales level of $72.5 million, a decrease of 12.5% compared to the first quarter of 2019. YPF Luz increased investments by 18.4% in the period compared, that implied an increase of 7.2% in the net debt of the company, which amounted to $769.1 million.
The portfolio led by Martín Guzmán managed to exchange, in a bidding process, Treasury Bills (LETES) in dollars (94% of the exchange) and the Dual Bond (AF20) (6% of the transaction) in exchange for securities in pesos maturing between 2022 and 2024, with interest rates between 1.2% and 1.5% above the Reference Stabilization Coefficient (Boncer). The debt for the foreign currency assets, in private hands, accumulated close to $3 billion. The privately held assets that entered into the swap represented almost 5% of the amount of foreign debt under New York law that is being restructured.
The BCRA’s International Reserves rose Friday $4 million to $43.41 billion, although, in the week’s accumulated, they lost $159 million due to Wednesday’s big sale. The blue dollar remained this Friday at its historical high of 122 pesos, which made the week 3.4% higher because the last obstacles to the purchase of dollars in the formal circuits caused the exchange pressure to shift to the parallel market. The stock market dollars rose 0.6% during the week. The “CCL” dollar closed at 115.35 pesos and the “MEP or Bolsa” dollar at 112.98 pesos.