Argentina strikes deal to slash 8% in medicine prices, a market that moves $5bn a year

The new government of Argentina agreed with national and foreign laboratories an 8% reduction in the prices of medicines until next February, in the midst of a serious economic crisis. The pharmaceutical industry estimates that the market moves in the entire productive and commercial chain about $5 billion per year and the agreement would mean resigning about $32 million per month.

Fernández’s emergency decree doubles redundancy compensation

President Alberto Fernández, has decreed a double redundancy compensation to workers for a period of 180 days in case of “dismissals without just cause”, as means to "stop the worsening of the labor crisis “. In the case of dismissals without just cause ”the affected workers will have the right to receive double the corresponding compensation in accordance with current legislation,“ says the decree.

President Fernández decrees rise on Argentine agri-business export taxes

President Alberto Fernández modified by decree this weekend the withholding scheme for agricultural exports by canceling the limit of 4 Argentine pesos per dollar that had been applied when the exchange rate was ca. ARG$ 28. The implementation of the update means an average tax increase of 5.3% with different margins on export duties for certain tariff positions.

Martín Guzmán: “No confrontation with creditors” to solve “virtual default”

In his first public appearance as new Economy Minister, Martín Guzmán outlined the broad themes of the policy proposals that he hopes will take Argentina out of a "virtual default". Guzmán disclosed that there are already ongoing negotiations with the International Monetary Fund (IMF) for a new programme amid a recession. Guzmán also anticipated that "the year 2020 is not a year in which fiscal adjustment can be made" and that"a larger fiscal contraction would deepen the recession and aggravate the problem".

Chinese Consortium Close to Buying Argentine Power Unit

A consortium led by China Huadian Corp. is close to acquiring a controlling stake in Argentine power generator Stoneway Group LP, according to people familiar with the matter. State-owned Huadian and its partners will acquire about 80% of Stoneway in a deal expected next week. The group will make the acquisition in three tranches through a unit called China Huadian Engineering.