Day: June 9, 2020

Argentina technically defaulted $2.1 bn debt with Paris Club

Argentina entered last Friday technically in default with the Paris Club. It will regularise its situation in the last quarter of the year when the country finishes negotiating an agreement with the International Monetary Fund. Argentina owes it about $2.1 billion. It will remain in default for the second time in less than 20 years.

BCRA implemented new dollar filter for importers

The Central Bank issued a resolution for companies that need access to dollars to pay for their imports by accessing foreign currency in the official market. There will be a double filter, in the banks and the BCRA itself. For that purpose, companies will have to fill in a form and submit it to the Foreign Exchange Management of the agency.

The World Bank predicts a 7.3% drop for Argentina in 2020

With lower export demand and the impacts of uncertainty related to debt negotiation, the GDP contraction projection is estimated at 7.3% in 2020. The bank forecast a recovery for 2021 of 2.1%. It will depend on a rebound in consumption and investment as a result of the restoration of confidence if the debt swap is successful.

The government ordered the intervention and expropriation of Vicentin

It is a decision to achieve food sovereignty that the country needs and that 1,300 and workers continue to be employed, in addition to the fact that around 2,600 producers continue to have a company to sell what they produce”. It will be a witness company in the grain market like YPF in the case of fuels. Vicentín participates with almost 10% of agro-industrial sales and is part of the small group of exporters that commercialize Argentine grains. Under state supervision, he would avoid the accumulation of crops that tend to put pressure on the exchange rate. The leading exporters would have accumulated grains in silo bags for the equivalent of $9 billion.