The government extended the negotiation period with the bondholders that was due to expire today until June 2 to advance in the dialogue with the creditors, which will lead Argentina to a selective default since this Friday it will not cover outstanding maturities for $503 million corresponding to the interest of three global bonds. The government plans to make modifications to the offer, to reach a sustainable agreement with creditors.
The S&P Merval de Bolsas y Mercados Argentinos (BYMA) index improved by 4% to 41,388.50 points. Argentine corporate paper ended with the most increases led by Pampa Energía (+9.2%); Banco Macro (+7.5%); Grupo Financiero Galicia (+7.1%); Corporación América (+6.8%); and Transportadora Gas del Sur (+6.6%). Argentine country risk, which is prepared by the US bank JP Morgan, remained almost stable, rising just two points to close at 2,784 units.
The low level of the river is beginning to disrupt productive life, ports and river traffic in an area such as the Gran Rosario, where 75% of the total grain produced in Argentina is exported. The drop generates a problem in the waterway’s draught, which went from 34 feet to 31, with ports that will receive this year, according to estimates by the Rosario Stock Exchange (BCR), 34 million tons of soybeans. It causes ships to have to navigate lighter. Because of the shallower draught of the Parana Canal, vessels arriving from Europe and Asia to load soybeans, oil and flour, can not complete their holds in the ports.
According to the May report of FocusEconomics, which includes forecasts from banks and private consultants, in 2020 there will be a fall in GDP of 6.9%, inflation will end the year in the order of 46.3%, and the official exchange rate of the dollar will be 86.5 pesos, although it could climb to a maximum of 102 pesos. Today it is at 68.08 pesos, on that price, for the purchase, you have to add the 30% tax.
“Moody’s Latin America Agente de Calificación de Riesgo S.A. has today withdrawn rating of three bond funds managed by Argenfunds S.A. (Argenfunds) The funds affected by the withdrawals are as follows:
– Argenfunds Abierto Pyme FCI withdraw Caa-bf global scale bond fund rating and B-bf.ar national scale bond fund rating
– Argenfunds Renta Balanceada FCI withdraw Caa-bf global scale bond fund rating and B-bf.ar national scale bond fund rating
– Argenfunds Renta Mixta FCI withdraw Caa-bf global scale bond fund rating and Baa-bf.ar national scale bond fund rating