Argentina will be able to use all or part of the $18.6 billion Chinese debt swap that remains in the reserves. However, with conditions that complicate it: 1) it will only be able to count on the part of the loan corresponding to the period of Fernandez de Kirchner's government, some $11 billion and 2) China demands, as an indispensable condition, that the exchange rate is from pesos to yuans, without going through the dollar. Or, eventually euros, but in a minimum amount.
West Texas Intermediate (WTI) crude this morning was down 3.99% and trading at $37.99 a barrel on December delivery contracts. North Sea Brent oil was down 3.29% and was trading at $39.85 a barrel on deals for December as well.
The Investment Trade Monitor, prepared by UNCTAD, points out that Foreign Direct Investment (FDI) registered a 40% fall in Argentina in the first half of this year compared to the same period in 2019, affected by an international wave caused by the coronavirus pandemic. Globally, FDI flows fell by 49%, the paper indicates. In Latin America and the Caribbean, FDI flows fell 25% in the first half of the year to $62 billion.
The global sales of Argentine meat grew, in the first nine months of 2020 644,000 tons were exported, which reported 2.002 billion dollars. The total exported is 13% higher than the same period in 2019, but 2% lower in value due to the substantial fall in the average price of the ton of beef on the bone, which concerning the end of last year deteriorated by 22%.
Today the interest on Tideneu bonds (2025) was due for more than 13.7 million dollars. Neuquén announced today that it would not pay. The government is trying to get the creditors to accept the restructuring offer that expires this Friday. It will be entered in a 30 day grace period to do so and avoid default. The government of Neuquen intends to restructure a total of $704 million, one of the highest debts after Buenos Aires and Córdoba.
Following the pandemic, the firm will invest an additional $30 million to enlarge the site where the plant locates to accompany the launch of a new ship in October 2023.