April, with a historical fall, was the floor for the level of economic activity (the economy then contracted by 26.4%). It estimates a collapse in the second quarter of the year around 20%. A rebound is also forecast for the second semester, although it will not reach pre-pandemic levels.
Argentina’s cost of production fell by 0.69% in May compared to April but rose by 5.03% compared to the same month in 2019. The main variables that contributed to the increase were the cost of construction, electricity, logistics costs, private wages, raw materials, labour disputes, interest rates and insurance payments.
Gold prices climbed Tuesday, boosted by a falling dollar and expectations of further stimulus measures to revive economies impacted by the pandemic. It rose 1.5% to $1,842.52 an ounce, its most significant daily rise since early May. Gold futures in the United States, meanwhile, also closed with an increase of 1.5% to US$ 1,843.9 per ounce. Silver surpassed the threshold of $20, in cash climbed 6.4% to $21.18 an ounce.
It estimates that the 50 most enormous fortunes in Argentina, all of them over $300 million, through the participation they have in their multiple companies originate around 14% of the GDP with a strong presence in the fields of energy, telecommunications, pharmaceutical business, retail and financial intermediation.
The conflict between mayors of the ruling party PJ that threatens the company’s concession could ended in another multimillion dollar lawsuit that could cost Argentina $16.5 billion.Reality shows that Argentina always pays. Despite its bad reputation as a payer, it has already paid out billions for expropriations, change of contracts into local currency, and debt in default in international courts, and has at least $8.75 billion in lawsuits pending.
SanCor is negotiating with the BAF Capital investment fund, one of its biggest creditors, which aims to reincorporate the dessert and yoghurt business that would represent an injection in its monthly turnover of around $1 million. It’s a simple way to ensure that the debt will repay. At the same time, they save logistics costs and can close deals with producers to buy raw materials.
In a joint statement, and for the first time, the three clubs of foreign debt creditors met to reject the last Argentine offer, make a counter-proposal. The legal aspects agreed upon between the country and the creditors. However, economic differences remain. The bondholders contemplate a coupon of 3.4% average and total debt relief of $ 35 billion in 9 years. The parity will be in the order of $56.5 for each bill of 100, taking an exit rate of 10%. The difference is about three dollars with the last Argentine offer of 53.5 dollars.
The province of Buenos Aires is changing its funding profile with a strategy to capture resources for specific areas: health and infrastructure programs. In the first semester, they obtained $124 million in financing lines with multilateral credit organizations. It estimates that this amount will rise to $285 million by 2020.
Businesses in the construction sector are among those most affected by the paralysis imposed by the pandemic. So far this month, only 45% of works, both public and private, have been maintained in regular activity, and in June more than 80% of construction companies received no building contracts.
The local production of biosimilar drugs has a very high strategic value for Argentina, which is a pioneer in Latin America. Since the introduction of the first biosimilar in Argentina in 2014, the national health system has had a cumulative direct saving of $65.7 million in treatment costs. Through the substitution of high-cost biological drugs for products of equal quality, with prices between 15% and 25% lower, they allow more patients access to therapies for chronic diseases, such as cancer or autoimmune diseases. More than 35,000 patients have received such treatments, and the number is growing.