Falling bonds cause losses of $1.2 billion to the BCRA and the Anses

The exchange measures announced on Tuesday night by the Central Bank (BCRA) produced damage in the power of intervention on the so-called “financial dollars” that the government had achieved with the debt swaps, besides affecting the patrimony of the public entities that participated in that operation. The abrupt devaluation of up to 15% that the new debt bonds suffered after the announcements caused an accounting loss of about $1.2 billion in the holdings of some $24 billion exchanged by the BCRA and the Sustainability Guarantee Fund (FGS), which administers the Anses, the two official entities that had the most significant participation in the restructuring.

The government should deactivate the conflict to encourage foreign currency liquidation for $12 billion

Just when soybeans reached their maximum value in two years, getting a FOB price in local ports of $434 per ton, and in a context in which there are still some 18.3 million tons to be sold and another 8 million tons with a price to be fixed, which imply $12 billion in foreign currency to enter the national coffers, the new restrictions paralyzed the grain market.

Country risk is already up 14%

On September 10, JP Morgan Bank rebalanced the Argentine country risk based on the prices of the new bonds, the index fell almost 50% and placed at 1,101 units. The new restrictions announced by the Central Bank (BCRA) and the National Securities Commission (CNV) affected the quotations of the sovereign instruments issued for the exchange and brought the surcharge that Argentina must pay to get into debt to 1,258 points, an increase of 14.26% in only eight days.

Moody’s reports worsening financing conditions for companies

According to a report by the US consulting firm Moody’s, the COVID crisis and the fragile economic situation will increase the problems for corporate credit in most sectors in Argentina, at least until mid-2021. The document points out that the restructuring of the foreign debt could give some relief to the situation, but it clarifies: The tense fiscal accounts of the Government limit its capacity to support the business sector. The financial trap puts at risk the possible debt renegotiations of the provinces, which in many cases are already close to materializing. The companies that have been affected are Banco Hipotecario, which faces capital maturities of around $280 million on 11/30 this year, and IRSA, with $181 million by 11/15.

Energy production fell 15.1% in the second quarter

The production of energy registered a drop of 15.1% in the second quarter of 2020, compared to the same period in 2019, reported the INDEC this Thursday. In the second quarter of 2020, the synthetic energy indicator (ISE) of the seasonally adjusted series also showed a decrease of 20.9% compared to the previous quarter, and the index of the trending-cycle series registered a negative variation of 5.1% compared with last quarter.

Garbarino placed Trust and had an over demand of up to 180%

Garbarino, the leading company in the sale of electrical appliances and technology, launched this week the 158 Series of Financial Trusts, which generated strong demand, up to 180%, in what was the first debt placement after the change of shareholders of the company. Garbarino received offers for up to 2.8 times its VDF A Trust. The cut-off rate was a nominal 27.1% per annum.

Total asked Metrogas to pay $6.84 million

There is tension between gas producers and distributors. The oil companies will send a letter to the government warning that they will cut off the supply if the state-run distributor Metrogas does not pay its bills. Yesterday, the French company Total sent a letter to the government urging it to pay 514.8 million pesos ($6.84 mn) within five days.