YPF Luz announced tomorrow it would launch a public offering for the placement of a series of Negotiable Obligations of the “linked dollar” type for an initial amount of $30 with maturity in 18 months. The public offering scheduled for tomorrow and the closing on the following Friday. The amount could be increased depending on the response of the market, and may also subscribe in pesos.
Creditors who had taken out Credit Default Swaps (CDS) if Argentina failed to meet its obligations were paid last Friday. About $1.5 billion auctioned off. The recovery value of the defaulted bonds was placed at $31.5, CDS holders charged $68.5 for each note. Eleven banks participated.
There are 40 million people (89% of the country’s total) who today live in a household where some member receives some income from the state. The level of assistance reached by the State apparatus is not only worrying in the short term but also poses severe risks in the medium term. It is alerted by the deterioration of the fiscal situation.
Wine establishments throughout the country agreed in their rejection of the 30.1% increase of the mandatory tax to the Argentine Wine Corporation (COVIAR). The budget of the Corporación Vitivinícola Argentina is 140 million pesos a year ($ 2.01 mn). The wineries contribute almost 50% of this total. The 262 partners represent 90% of local exports and about 65% of the domestic market.