Argentina’s Natural gas pipeline company borrows $55 mn from Itaú

Transportadora de Gas del Norte (TGN), the second-largest natural gas pipeline operator in Argentina, has signed a two-year, $55 million loan from the Nassau branch of Itaú Unibanco at a rate of 1.75% per year. TGN set up a global bond program in June for a maximum of $600 million to finance investments, working capital and debt refinancing. It also comes as the government launched a three-year plan to boost production, reduce imports and gradually increase exports, which will increase the use of pipeline capacity.

Bondholders snub sweetened restructuring offer from Neuquén

A group of creditors have rejected an improved o!er by Neuquén to restructure $328 million in 8.625% 2028 bonds, saying that the Argentine province can pay more. On October 19, Neuquén, Argentina's most productive province for oil and gas, improved its offer for restructuring the 2028 bonds in a bid to reach a deal by October 30. It included increasing the interest rate on the new bonds and paying a cash sweetener. The Ad-Hoc Committee of Secured Bondholders of the Province of Neuquén said its institutional investors hold about 38% of the 2028 notes, meaning that they have the power to block a deal.

September trade surplus was $584 million

According to the INDEC, the trade surplus for September was $584 million, which is less than what observed in previous months. Imports rose by 3.1% year-on-year and exports fell by 18%. Despite the slowdown in September, the accumulated trade surplus for the year ($11.56 billion) is the highest since 2009 and was 21.7% higher than in the first nine months of last year.

Automotive sector: entrepreneurs ratified investments of $5 billion until 2021

Entrepreneurs from the automotive sector ratified the investments planned until 2021 for a total of $5 billion. The sectorial table of the Economic and Social Agreement launched by the National Government began the formation of a tripartite entity between the State, entrepreneurs and workers, who agreed on the principal axes of work in the short and medium-term to boost production.

Health sector reports average adjustments in medicines over 500%

The Argentine Health Union, which groups clinics, sanatoriums, hospitals, diagnostic centres, social works, financiers and emergency services that serve 70% of the population, warned the Government that in recent months there had been average adjustments in medicines that exceed 500%. There are increases of up to 1100% in medications that must be administered especially to patients with COVID

The economy fell 11.6% in August

The Monthly Economic Activity Estimator (EMAE) estimated that August registered a year-on-year fall of 11.6%. The country lost almost four million jobs in the worst months of the quarantine, but many who kept their jobs saw their incomes decline. Also, the volatility of alternative exchange rates and the exchange rate gap began to generate problems in future expectations about the situation of the economy. The lack of dollars in official reserves started to impact on replacement costs, corporate debts and imports.