Argentina had a current account deficit of $1.052 billion in the third quarter versus a $7.442 billion deficit in the same period last year, the National Institute of Statistics and Census (Indec) reportes on Thursday. The total gross external debt stock at residual nominal value at the end of September was estimated at $ 276.7 billion, which implies a rise from $ 255.5 billion from July-September last year.
Argentina’s government has moved quickly to sidestep a debt crisis, appealing to bondholders including Pacific Investment Management Co. to roll over maturing debt. Finance Secretary Diego Bastourre and his deputy, Ramiro Tosi, met with Pimco officials and local bondholders to persuade them to accept new notes in exchange for 24.5 billion pesos ($410 million) of bonds maturing on Monday
Argentina’s economy grew in the third quarter 0.9% from the April-June period, its first quarterly expansion since 2017, technically ending an 18-month recession. Although it is faster than the 0.6% forecast by economists surveyed by Bloomberg, the country is poised to slip right back into recession, according to a Central Bank survey of economists who forecast quarterly contractions in the end of the year as well as in the beginning of 2020.
Argentina’s unemployment rate rose to 9.7% in the third quarter versus 9.0% in the same period of 2018, marking one of the highest rates recorded in recent years, the National Institute of Statistics and Census (Indec) reported.
Argentina has roughly $39.3 billion in interest and principal denominated in pesos and dollars coming due to private creditors next year, according to government data. The country wants to continue making debt payments while it renegotiates with its creditors in the coming months, said the presidente of the central bank (BCRA) Miguel Angel Pesce. He added that what the Government "doesn't want during this negotiation period for some maturity to end up provoking an unwanted default".
The emergency bill that Alberto Fernández's government sent to Congress this week would add a new type of dollar to the five already existing in the local market. What is already beginning to be called "tourist dollar" with a 30% tax on purchases abroad and payments of services to foreign companies, will also cover individual purchases in banks and exchange agencies with a limit of $ 200 per month. The other five types are: official retail dollar, wholesale dollar, free dollar (black market), MEP dollar or stock exchange, and dollar cash with clearance.
Gross Domestic Product (GDP) fell 1.7% in the third quarter of the year compared to the same period of 2018, the National Institute of Statistics and Census (INDEC) reported. The most affected sectors were industrial production, construction and commerce.
A group of around 80 of Argentina’s bond holders have formally set up a creditor group, committed to conducting talks with the new government "under G20-endorsed Principles for Stable Capital Flows and Fair Debt Restructuring", according to a statement. The group said it had designated UBS Securities and Mens Sana Advisors as financial advisors and did not specify a lead creditor.
Argentina's country risk fell 118 basis points to 1,996 (7.5%) according to the JP Morgan Plus 11EMJ emerging market bond index on Tuesday afternoon, while the price of over-the-counter government bonds increased 1.7%. Market analysts attributed the good behaviour in the Argentine public debt securities to the favourable reception that was given to Economy Minister Martín Guzmán's economic proposals sent to the Congress.
Argentina’s government is seeking higher taxes on agricultural exports and to tax foreign assets held abroad, the Economy Minister Martin Guzman said to the press. The government wants to raise export taxes on wheat and corn to 15% from 12%. The bill would also raise the tariff cap on soybean exports to 33% from 30%. It also seeks to tax financial assets abroad. The purchase of foreign currencies would be taxed by 30%.