So far this year, amid the crisis caused by the pandemic, the government has managed to obtain financing of more than $4.7 billion from the IDB, CAF and the World Bank, among other organizations, with the clear objective of boosting the economy. Already, $800 million disbursed. The IDB will provide $1.8 billion, of which $300 million will go to reactivate SMEs.
Day: July 2, 2020
Budget: 93% of the budget for the industry already implemented
In the first five months of the year, the industry sector executed 93.8% of the budget—71.1 billion pesos ($ 1,008 bn), which represents 2.9% of the total. The figure corresponds to the financing of production.
S&P downgraded seven Argentine dollar bonds
On Wednesday, the rating agency S&P lowered the rating of seven Argentine bonds denominated in dollars to "D" from "CC" because the country did not pay the maturity of $582 million in interest.
Trade with Brazil fell by 35% in June
Bilateral trade with Brazil reached $1.1 billion during June, according to official data from the Brazilian government. It means a year-on-year contraction of 35%, the lowest level since 2003. The bilateral trade balance showed a deficit of $103 million for Argentina.
Support for Covid-19 is now 2.9% of GDP
Although the national government estimates that in total it injected 5 points of the product into different direct and indirect programs to confront the pandemic, the amount spent up to May reaches 2% of the GDP. If we add to this the spending of June, the amount rises to 2.9%.
Because of the crisis, BASF and Axalta stop producing car paints
Two major car paint manufacturers announced in the last hours that they would stop producing in the country as a result of the crisis caused by the pandemic both locally and globally. They are the German company Basf and the American company Axalta. The German company will move production to the state of Sao Paulo but will continue to operate commercially in the country through imports. On the other hand, the American company announced that it is withdrawing from the local market definitively.
Closing of Latam: Negotiations for 1,715 layoffs set in motion
The departure of Latam from Argentina means that it stops flying to 12 domestic destinations, three regional ones (Sao Paulo, Santiago de Chile and Lima) and one international one (Miami). Yesterday, the date was set to begin negotiations on the future of the 1,715 employees who will be fired when Latam Airlines completes its exit from Argentina.
