Author Archives


Uncertainty among companies, which will have to renegotiate $3.3 billion

The Government informed that between October 15 and March 31 there are maturities of corporate debt for $3.3 billion. For companies with obligations over $1 million, they will only be able to buy on the dollar exchange market for 40% of the capital that matures. The rest has to refinance with new foreign debt with an average life of 2 years. The restriction points directly to the heart of companies leveraged in the capital market with negotiable obligations (ON) in dollars. It increases the risk of investing in Argentina.

Wholesale price index rise 4.1%

The wholesale price index registered in August the most significant jump of the year, increasing by 4.1%. The variation is a consequence of the 4.1% rise in National Products and 3.9% in Imported Products, as reported by the INDEC. In year-on-year terms, the increase was 35.4%.

Opulens, with the development of its lens design technology, has a turnover of $5 million per year

Mauro Stabile, CEO of Opulens, says that it is a company that was born in the early nineties, developing its lens design technology, which today they export as a service and with which they produce around three million pairs per month worldwide. Opulens manufactures lenses only for Argentina because they make it one by one from the medical orders that arrive from the opticians, but it sells the technology with which it produces them to the whole world. The company charges for each order around 1% of the final value of glasses, and invoices around $5 million a year.

Argentina imposes 35 % tax on foreign currency purchases to stave off hoarding

Argentina on Wednesday unveiled a new 35 percent tax on foreign currency purchases to prevent the public from hoarding U.S. dollars in the face of a weak peso. The Government said it would tighten currency controls to dampen the demand for U.S. dollars. Previous restrictions remain in place, including limiting citizens to buying no more than 200 U.S. dollars a month. The new tax does not apply to spending on healthcare, medication, books in any format, online education and software for educational purposes.

Government launches Local Supplier Development Program with $33.25 mn for agricultural machinery

The Government launched the Local Supplier Development Program, with a budget of 2.5 billion pesos ($33.25 mn) and targeting strategic value chains for the national economy. In this context, global brands of agricultural machinery are added to an official plan of local suppliers to develop national parts of world quality, at competitive costs and scales of production.

Private sector companies will be able to access only 40% of their dollar requirements for the financial debt

The Government issued a battery of measures with which it intends to reduce the demand for foreign currency, in which private sector companies will be able to access only 40% of their dollar requirements to pay financial debts in foreign currency and will have to present a detailed refinancing plan to initiate a process of renegotiation of their respective external liabilities. It occurs in a context in which reserves registered a notable fall to $388 million in September. So far this year, a retraction of $2.33 billion has been accumulated, while net reserves oscillate around $7 billion.

Cauchari solar park began to sell energy to the National System with 245 Mw

The Cauchari solar park, with 300 Mw of power, was commercially enabled, so it began to inject clean energy into the Argentine System of Interconnection (SADI). From Friday until last night, 245 Mw injected and it is very likely that by now it can reach 300 Mw. The work was executed by contractors Power China and Shanghai Electric, from the credit taken and the placement of an international bond (“green bond”) by the provincial government, and is part of the range of Chinese investments in Argentina’s energy.