Argentina had a current account surplus of $2.824 billion in the second quarter versus a $252 million surplus in the first three months of the year and a $1.941 billion deficit in the second quarter of 2019, state statistics agency Indec said on Tuesday. The current account is the broadest measure of a country’s foreign transactions encompassing trade, services, and an array of financial flows, including interest payments.
In the midst of a fall in mass consumption that was accentuated in recent months with the Covid-19 pandemic, Coca Cola Argentina launched a program to shore up the business of small stores and kiosks, which account for 90.% of its total sales volume. In this plan, Coca Cola plans to invest $770 million ($10.1 million) that will be destined, basically, to financial and health assistance for the reopening of 25,000 stores throughout the country.
A total of 504 people stopped paying taxes in Argentina due to change of tax residence. Of this number, 229 taxpayers changed their tax residence to Uruguay, including important names in the business world such as the founder of Mercado Libre, Marcos Galperin, and the president of Puente, Federico Tomasevich.
Argentine digital banking startup Uala is expanding operations to Mexico as the Covid-19 global pandemic fuels a boom in demand for cashless payment options. The announcement comes after founder Pierpaolo Barbieri said last year the company planned to double in size after millions in new investments led by Tencent Holdings and SoftBank Group Corp, the Japanese technology investment giant. Uala will offer in Mexico a Mastercard card for physical and online purchases, cash withdrawals from ATMs, and the sending and receiving of payments, the company said.
Argentina's government is weighing a temporary reduction on some export taxes to boost dollar inflows as its foreign reserves fall to a three-year low, according to people with knowledge of the matter. Officials are still discussing which products will be considered in the measure, the percentage of the tax reduction, and how it will apply. Measures may be announced for soy soon and could apply in the month of October.
The credit rating agency Moody's raised the outlook for Argentina's debt from negative to stable in both foreign and local currency, following the closing of the securities exchange. The change in the outlook to stable from negative reflects a substantially lower risk of future losses exceeding the rating implicit in the current Ca rating, following the recent debt restructuring.
The Ministry of Economy announced it would pay close to $12 million for the maturity of interest on the PAR bonds, nominated in dollars and euros, issued in the 2010 debt swap. In these bonds, the minimum thresholds necessary to activate the Collective Action Clauses (CACs) in the last debt restructuring were not reached, which explained that the adhesion to the Argentine offer was 99% and not 100%.
The agricultural production of the 2020/21 campaign will reach 135 million tons, including the cotton harvest, a decrease of 4.5% concerning the previous cycle, according to a projection made by the consulting firm Investigaciones Económicas Sectoriales (IES). It is due to the possible impact of the La Niña climate phenomenon that would affect yields and the final volume harvested, despite the recovery of international prices for corn and soybeans.
The automotive company Toyota is already operating its factory in Zarate with 100% renewable energy that comes entirely from the Manantiales Behr (Chubut) and Los Teros (Azul) wind farms, which belong to YPF Luz, the renewable energy division of the state oil company. The contract for the provision of renewable energy has a duration of 10 years, for a total of 76,000 MWh/year. The electrical energy that Toyota will use is equivalent to 15.9 MW of installed power, which represents the generation of more than four wind turbines to supply the demand of the Zárate plant.
The government is studying alternatives to encourage producers to market the merchandise since it estimates that they have $10.6 billion worth of soybeans and corn in their silo bags. There are 34 million tons of soybeans and corn that the farmers have in their power and that due to uncertainty and the exchange rate gap they prefer to keep.