The real estate industry absorbs much labour throughout the country: more than 500,000 people in the formal sector and 1.5 million if we include the undeclared and independent contractors. Only between works of the companies associated to the Chamber of Urban Developers (CEDU), could employ some 22,000 workers; while the projects in the portfolio add up to a potential investment of $7 billion in the next two years. The effects of the paralysis of the activity and the exhaustion of the capacity to sustain fixed costs of taxes and salaries could produce the loss of more than 20,000 jobs.
Two months ago, the Senate passed a bill to promote the "Knowledge Economy," a sector that exports more than $6 billion annually, employs nearly 500,000 people and could create another 500,000 jobs.
Argentine shares and bonds traded abroad registered generalized falls, in a day when a 99% acceptance for the restructuring of public debt in foreign currency was known, and profits were also taken in the leading indicators of Wall Street. Argentine ADRs fell by up to 10.7%, as in the case of the electricity distributor Edenor. YPF subtracted 2.3%, Mercado Libre fell 0.9%, and Grupo Galicia fell 2.6%.
The government announced this Monday that the proposed budget for 2021 will present to Congress on September 15 and that it will have a primary fiscal deficit goal of 4.5% of GDP, along with other projections of the budgetary and financial framework on which public policies will base next year. It is the first official projection on government spending for the coming year, together with the announcement of the restructuring of 99% of the debt in foreign currency, which will clear payments of $37.7 billion over the next ten years.
Even though the government successfully closed its debt restructuring offer for about 63.5 billion dollars, in which it obtained a 93.55% adherence level that with the collective action clauses reached a 99% restructuring, it remains to define what will happen to those creditors that make up the 1% of those that did not enter into the exchange. These are holders of two small series of bonds for $600 million of the Par bond in euros 2010 and some $47 million of the Par bond in dollars 2010. The most logical thing to do is to pay them off, ruining the swap for $600 million makes no sense. They are low-coupon bonds that are not going to be a problem for the government, not even in terms of maturity because they are long term.