The agricultural sector is Argentina's leading exporter up to September with 21 billion dollars, representing 51% of the foreign exchange that entered the country so far in 2020. It expects that for the rest of the year and the first two months of 2021, it will generate 11 billion dollars more (an average of 2.2 billion dollars per month).
The international reserves of the Central Bank of the Republic of Argentina reached this Wednesday the 39.86 billion dollars. Such level constitutes adequate support to contain the volatility of the peso and to guarantee the necessary inputs to continue with the recovery process of the economic activity. Argentina's international reserves compose of a basket of assets that today registered falls in their prices in the context of global fear of a new wave of contagion of Covid 19.
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.
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.
In a few days, the history of Templeton in Argentina will end. If everything goes as the government thinks, next week the $750 million auction operation of the international fund that bet more than $3 billion in the country will end, it will only remain with some marginal placement.
Argentina's IRSA Inversiones y Representaciones said Friday that it had launched an offer to swap up to $181.5 million in 10% bonds due this November for the same amount in two classes of new notes that will mature in 2023, the latest setback for the real estate developer as access to dollars tightens in the cash-strapped country. The offer is for swapping the 2020s for new bonds paying the same interest plus a cash sweetener of 40%, IRSA said in a securities filing.
Argentine energy and cement producer Petroquímica Comodoro Rivadavia (PCR) said Thursday that it would offer up to $40 million in bonds at auction in the local market on Friday, as corporate issues revive from a lull over the past month on demand for dollars. PCR, the 10th largest oil producer in Argentina, said it would offer three series of bonds, including two series of dollar-linked notes and one in pesos.
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.