The Ministry of Productive Development launched the LIP Pymes Productive Investment Line which is already available in 21 public and private banks. These are loans with subsidised interest rates with funds from the portfolio held by Matías Kulfas, which will finance projects of up to AR$70 million ($822,683.40) per company, with a first tranche of AR$20 billion ($235.05 million).
The government decided to restrict international flights to and from the country because of the increase in COVID-19 infections. The measure provides for a 30% reduction in weekly frequencies arriving at Ezeiza International Airport.
Moody's expected that the credit outlook for Latin America will remain negative for the next "12 to 18 months" due to the COVID-19 and this will affect sovereign issuers. According to the US firm, despite the growth outlook that points to an economic revival in 2021, "increasing social pressures will hinder governments' ability to restore lost fiscal space", which will put pressure on credit quality in the region.
Strikes by crop inspectors and maritime workers are prolonging disruptions at grain terminals in Argentina, keeping soy traders alert even as other protests from oilseed crushers have abated. The strikes have snarled shipments, affecting powerhouse agricultural traders like Cargill Inc and Bunge Ltd and rallying markets to multi-year highs.
The central bank of Argentina on Wednesday imposed a new rule limiting the import of foreign luxury goods as part of its effort to stanch the leakage of its own international currency reserves. The new rule states that importers will have to get their financing from overseas or wait a year to pay their overseas supplier, all in an effort to slow outflow of central bank dollar reserves.
The primary deficit of the public administration in 2020 reached AR$477.41 billion ($5.63 billion), according to the Congressional Budget Office ( OPC).The PCO report details that there was a capital inflow of AR$146.055 billion ($1.72 billion) and capital outflow of AR$419.84 billion ($4.95 billion).
Argentina plans to boost natural gas exports to Brazil by up to 20 million cubic metres/day, Energy Secretary Daniel Martinez said. The move is seen as key for fueling production growth from the giant Vaca Muerta shale play. The focus of the exports will be to the southern states of Paraná, Santa Catalina and Rio Grande do Sul.
Argentina’s Ripio has acquired BitcoinTrade, the second-largest crypto exchange in Brazil, in a bid to increase its footprint across the frothy Latin American crypto market. Ripio (formerly called BitPagos) ended 2020 on a high, crossing the 1 million user milestone.
Argentina's country risk reached a maximum of 1,417 basis points, reflecting investors' fears about the behavior of the domestic economy and doubts about the international situation of the markets, traders told Reuters. They said that the financial problems faced by Argentina are compounded by fears of new confinements in Europe due to the increase in cases of COVID-19.
Argentina's Energy Secretariat said it has authorized a gradual 91% increase in biodiesel prices and 56% in the price for ethanol for oil refiners to mix into diesel and gasoline over the next few months, the first hike since October.