After the successful debt swaps, Argentina left behind the default, after the rating agency S&P announced on Monday that it raised the credit rating of CCC+ from selective default. S&P's decision comes after the country reported that it got an early acceptance of 98.8% to the proposed restructuring of its debt under local legislation, close to 41 billion dollars. Days before, the government closed an agreement with the debt creditors under foreign legislation, which totalled some 65 billion dollars, with a total acceptance of 99%. It implies minor reductions in the nominal value and a significant decrease in coupons, relieving the debt service in the next three years by providing an essential fiscal space.
Molinos Río de la Plata, the food company of Pérez Companc group, presented the figures of its consolidated operations in the first half of the year. It had a net profit of 608 million pesos, which represents a fall of 58% compared to the first half of last year. What is striking is that this year sales increased by 10.4%, sold more but earned less. It is explained by the cost increases that couldn't transfer to prices as a result of the freeze imposed by the government on a wide range of necessities.
The government indicated that an investment of 61 billion ($817.8 mn) is planned for the next few years in railways with its funds and $75 million with financing from the World Bank and the Inter-American Development Bank. Forty-one billion pesos ($549.6 mn) will go to rail infrastructure, 13 billion pesos ($174.29 mn) to works related … Continue reading Government plans to invest $817.8 million of its funds in railway works
During July, China was again Argentina's leading trading partner, the Asian country's market represented 11.3% of total exports of national products and 21.9% of imports. The principal shipments were soybeans, frozen boneless beef, and animal or vegetable fats and oils. Local shipments amounted to $553m in July (-14.3% y-o-y), while Chinese goods purchases reached $751m (-20.4% y-o-y).
Private consulting firms estimate that August inflation will be below 3%. It also reflected in the Relevamiento de Expectativas de Mercado (REM) released by the Central Bank last Friday, where analysts projected a rise in the Consumer Price Index in the order of 2.7%. The data, although it evidences a marked increase concerning the 1.9% of July, also exhibit a less intense acceleration than that foreseen months ago: in May, for example, 3.3% was expected for this period of the year.