Preliminary data from the National Institute of Statistics (INE) reflect a 5.6% contraction in the Bolivian economy during the cumulative period from January to April 2020. The World Bank predicted that the Bolivian economy will contract by 5.9% this year due to the effect of the pandemic, and the INE data seems to confirm this trend.
In the second semester the oilseed cereal complex could contribute between $10.5 and $12 billion to the country, although for this to happen, the distance between the dollar “cash with liquidation” and the official one should shorten. So far this year, sales of $10.3 billion have already been settled in the Central Bank.
Argentines accumulate 222.8 billion dollars in money deposited abroad, safe deposit boxes, according to official data calculated to the first quarter of the year. Compared to the first quarter of 2019, those dollar assets grew 17.1%.
YPF announced yesterday a proposed swap to extend the maturity of a $1 billion international bond. The paper matures in March 2021. The proposal is to offer those who join a cash payment and a new series of Negotiable Obligations with final maturity in 2025. Thus, for every $1,000 face value of Class XLVII, the investor will get $100 cash and $950 face value of a new series.
In June, there was again a drop in the collection of the leading national taxes levied on domestic operations. In both VAT and Profit, the real fall was 16.2%.
So far this year, amid the crisis caused by the pandemic, the government has managed to obtain financing of more than $4.7 billion from the IDB, CAF and the World Bank, among other organizations, with the clear objective of boosting the economy. Already, $800 million disbursed. The IDB will provide $1.8 billion, of which $300 million will go to reactivate SMEs.
In the first five months of the year, the industry sector executed 93.8% of the budget—71.1 billion pesos ($ 1,008 bn), which represents 2.9% of the total. The figure corresponds to the financing of production.
On Wednesday, the rating agency S&P lowered the rating of seven Argentine bonds denominated in dollars to “D” from “CC” because the country did not pay the maturity of $582 million in interest.
Bilateral trade with Brazil reached $1.1 billion during June, according to official data from the Brazilian government. It means a year-on-year contraction of 35%, the lowest level since 2003. The bilateral trade balance showed a deficit of $103 million for Argentina.
Although the national government estimates that in total it injected 5 points of the product into different direct and indirect programs to confront the pandemic, the amount spent up to May reaches 2% of the GDP. If we add to this the spending of June, the amount rises to 2.9%.