Day: May 18, 2020

Banks will not finance at a rate of 24% producers who keep more than 5% of their production

To force producers to sell their soybeans, the Central Bank (BCRA) decided to cut their access to financing for the loans launched at 24% to address the current situation of the country amid the coronavirus. The BCRA established that financial entities would not be able to finance human or legal persons with an agricultural activity that maintain a stock of their wheat or soybean production for a value higher than 5% of their annual harvest capacity.

A sharp decline in international reserves leaves them about 43.2 bn

In 13 months the BCRA’s reserves decreased by $34.3 billion, from a record $77.49 billion on April 9, 2019. At nearly $43.2 billion, reserves were near last year’s low of $43.1 billion on November 7, 2019. The decline in the level of gross reserves was driven in the previous month by the withdrawal of dollar deposits. Since Monday, April 20, with the quarantine in banks relaxed, $1 billion has left the financial system.

S&P Merval rose 0.4%

The S&P Merval index of the Buenos Aires Stock Exchange rose slightly 0.4% to 39,388.33 units, led by the improvement noted in energy companies. The most significant increases were recorded by Despegar (9.3%), Corporación América (6%) and Central Puerto (5.7%); while the decreases were led by the financial segment, whose shares fell to 2.2%.