Adecoagro, Argentina’s largest milk producer, received a $100 million credit from the International Finance Corporation (IFC) a few weeks ago, which will use to make investments in the agro-food sector to double its milk production to 200 million litres a year. The firm, which listed on Wall Street, also has assets in Brazil and Uruguay.
According to a recent report by the National Securities Commission (CNV), financing for SMEs in the first half of the year increased 80% year-on-year. The deferred payment cheque remained the main instrument, reaching more than 90% of the amount obtained by the companies. 48% of the companies financed between April and June in the capital market were SMEs.
For the first time in the year, private dollar deposits registered a monthly growth during July. As of July 20, official data show that the stock of these private placements has grown by $270 million, reaching a total of $17.06 billion, after falling to levels of $16.77 billion.
The Central Bank’s board of directors was able to renew the currency swap with the Central Bank of China for about 130 billion yuan, equivalent to $18.2 billion, which was due to expire on July 27. This amount represents 42% of the BCRA’s gross reserves, which stand at $43.35 billion. The Central Bank’s board of directors is thus seeking to strengthen the reserves.
The coronavirus aggravated the crisis unleashed in April 2018, particularly affecting the lower-income segments. About three million workers, informal and independent, had severe difficulties in carrying out their activities during the isolation. Construction, hotels, restaurants, entertainment services and domestic service were the most affected. This deterioration is being mitigated by the Emergency Family Income (IFE), covering on average about 40% of the labour income of this segment.
Argentine shares have climbed to over 15% in the last five days, an escalation that market specialists see as a preview of a possible agreement on sovereign debt restructuring. Among the week’s most notable increases were those of Loma Negra (+15.5%), Transportadora de Gas del Sur (+12%) and Grupo Financiero Galicia (+12%).