The Ministry of Economy closed last week with a goal fulfilled: of the $6.9 billion of dollar securities under local law that it sought to exchange for new peso instruments, it managed to convert $4.1 billion into CER-adjusted bonds maturing in 2023 and 2024. The conversion of foreign currency securities into peso debt is one of the financial strategies deployed by the Ministry of Finance that could reach $20 billion. Those investors who do not enter into the exchange driven by the law will see the payment of their maturities postponed to after December 31, 2021.
The acceptance of 58.4% of the $1 billion renegotiation offer that expires on March 30 clears the financial picture for YPF until the end of the year. The company will wait for the final closing of the exchange transaction on July 30 and then begin designing a new deal for December this year and February 2021 to place a further Negotiable Obligation (or similar) for investors who did not accept the current proposal. If no more interested parties entered before the end of the month, a total of some $420 million would have to renegotiate.
More than 272,000 employees lost their jobs between February and May of this year. The number of workers contributing to the Argentine Integrated Social Security System (SIPA) fell by almost 1.75 million in the last year. The year-on-year contraction of employment reached 5.1% in May. It estimates that the unemployment rate will exceed 15% in the second half of the year and that it will close at around 13.5% in 2020.
Founded in 2013 in Buenos Aires by two Argentine entrepreneurs, Eugenio Pace and Matías Woloski, Auth0 became the youngest Argentine unicorn last year: currently, it is unlisted in the Stock Exchange and the investments it received indicate that it is worth $1.92 billion. Auth0 is a company that promises access and secure identification to all types of platforms, from entertainment or gaming sites to banks, including the companies’ proprietary software. On Wednesday it received an investment of $120 million.
The global economic crisis and the pandemic affected the energy demand, however, generation increased by 51.1% year-on-year in April, while in the last 12 months it has accumulated growth of 105.8%. The increases by sector show the following numbers: Biogas 51.8%, biomass 14.7%, wind 172.1%, and solar 241.9%. Due to the historical descent of the Paraná and other rivers, hydraulic generation fell 5.3%.
Argentina’s agro-export chain has created a coalition that will promote a plan called “Strategy for an Inclusive, Sustainable and Federal Agro-Industrial Export Reactivation”; to increase exports from $65 to $100 billion between 2020-2030. It will generate more than 210,000 new jobs. The plan has the support of more than 40 entities, among which are Ciara-Cec, the milling industry, poultry producers and exporters, feedlots, wet milling of corn, peanuts, biofuels and the Buenos Aires Grain Exchange.
The Ministry of Finance intends to exchange today part of the debt in dollars under local law for CER-adjusted peso securities maturing in 2023 and 2024. It is $6.9 billion between Letes, Lelink, AF20 and TV21.
The Mercado Libre e-commerce platform denounced a blockade of five distribution centres by the Truckers’ Union. It puts at risk the delivery of goods stored in the warehouses. The conflict affects the distribution of packages of more than 4 thousand SMEs directly and another 80 thousand that also require the distribution centres to operate to generate income, something that during the quarantine became even more necessary.
The national public sector registered during the first half of the year a primary deficit of $911,124 million equivalent to 3.3 points of GDP, reports the Congressional Budget Office (CBO). The programs that the Government had to implement to attend the health emergency derived from the COVID-19 pandemic represented 449.74 billion pesos ($6.3 bn). According to economists, the public sector deficit projects at a record of between 7 and 8 points of GDP, which would only be manageable if the Country debt front, both local and international, is closed; an agreement reached with the IMF; and an economic program is put in place to compose the activity and improve tax revenues.
The Federal Administration of Public Revenues (AFIP) today tightened its control over the assets of Argentines abroad, through a series of changes in criteria on personal property tax. In December 2019, it established that assets abroad should pay taxes at a rate of 2.25%. The rule indicated that it should be paid by those who had tax domicile in Argentina. Now, the AFIP established a series of modifications so that eventually the loss of residence in Argentina would not be argued by processing only the cancellation of the tax domicile.