To increase the productive capacities of a sector going through a period of high demand, the Government will launch a financing plan for the naval industry. It is a new credit line at a subsidized rate of 9,000 million pesos ($93.97 mn).
During the first half of the year, Argentina recorded a trade deficit with Brazil of $582 million. The data are from the Brazilian Ministry of Development, Industry and Foreign Trade. Although imports have shown greater dynamism than exports, the latter showed their highest growth in 25 years.
During April, economic activity contracted for the third consecutive month, registering a 1.2% decline compared to March in the seasonally adjusted measurement. The level of activity is still 3.1% below the pre-pandemic. The restrictions to avoid the second wave will also reflect in the May figure.
In May, the Central Bank recorded a foreign trade cash surplus of $2.36 billion, some $742 million more than what was reported last week by the National Institute of Statistics and Census (INDEC) based on Customs declarations. The data show the substantial improvement recorded by trade due to the increase in soybean prices and an advance in the rate of foreign currency liquidation by exporters.
In the last two months, the sneakers factory Dass incorporated 200 employees in the plant that operates in the city of Eldorado, in the province of Misiones. It also resumed the production of sports footwear for Nike. Currently, the plant produces 6,700 pairs of sneakers per day, and the aim is to double the output in the following months to increase it up to 17,000 pairs per day, among all the brands.
In July, more than $700 million will be due between bonds and cancellations of bilateral and multilateral loans, according to data from the Ministry of Economy. Argentina will pay the 2020 swap bonds, the first instalment to the Paris Club and other international credits. Foreign currency commitments for $6.5 billion are pending this year, most of them with the IMF.
Tenaris announced this Tuesday the start of its hydraulic fracturing operations in Vaca Muerta. As of June, 90 fractures have already been completed in 3 wells with excellent efficiency indicators, accompanying the increase in production levels of the Fortín de Piedra unconventional gas field.
Vista Oil & Gas and Trafigura Argentina announced yesterday the signing of a $250 million joint investment agreement in Vaca Muerta to develop 20 wells in the Bajada del Palo Oeste block. This alliance allows us to strengthen our business in Argentina and integrate the supply of crude oil for our refinery and the subsequent collection of fuels for our network of service stations, wholesale customers and the export market in neighbouring countries.
June would close with foreign exchange earnings from the agro-export sector of around $2.6 billion, a figure down from May's record of more than $3.5 billion, but in line with the historical average.
Ford Motor Co said on Monday that its financial services arm, Ford Credit, will close its operations in Argentina and Brazil. Its losses include $365 million related to foreign currency and about $10 million in cash from employee layoffs.