To support the operations of some 30,000 small and medium-sized Argentine companies hit by the coronavirus pandemic, the Inter-American Development Bank (IDB) approved a $500 million loan for Argentina.
After the close of the markets, where Argentine ADRs bounced up to 5.2%, the leading index provider MSCI decided to keep Argentina in the emerging market category, although it warned that it could remove that status if controls are tightened, and market accessibility deteriorates. Currently, only three shares of Argentine firms are part of the MSCI index: Telecom Argentina, YPF and Globant, with the participation of 0.12%.
According to data provided by the Argentine Dairy Chain Observatory (OCLA), in the first four months of the year, per capita consumption of dairy products reached 56.9 litres/inhabitant of milk, increasing to 2,582 million litres of milk, 1.8% more than the previous year. In the case of production, the result was almost 3,223 million litres of milk in the January-April period, an interannual increase of 8.5%. Exports there reached 777 million litres, with a rise of 22.7% as compared with the period January-April 2019.
Agribusiness was a pole of the generation of dollars in the country during the first four months, monopolizing almost 70% of the total income in terms of foreign exchange, exceeding 12 billion dollars. Total agro-industrial exports rose by 1.5%, with a surplus of $104 million with record shipments of corn and wheat.
Last month’s net result was one of the worst, probably more harmful than the one recorded during the hyperinflation of mid-1989. The deficit reached an equivalent of $3.6 billion at the primary level, and $4.4 billion was the deficit at the financial level. It is a rate of more than 10% of GDP.
Industry plummeted almost 31% year-on-year in April. The first four months of 2020 saw a drop of 11.5% compared to the same period in 2019. Industrial activity recorded a 30.6% year-on-year drop in April, the lowest level of production since February 2003.
Among Latin American countries, the historical average of remittances was $280 per month, and this figure maintained until 2019. With the pandemic crisis now the standard in the country is below $100 per month.
Mercado Libre was ranked 37th in a Financial Times ranking, which also includes companies such as Apple and Alphabet. Sales traffic of the Mercado Libre platform increased by 76% in April.
The leading S&P Merval Argentine Stock Exchange and Market (BYMA) index rebounded 7.8% to 40,951 units. The principal increases were in Ternium (+11.6%), Grupo Financiero Galicia (+11.1%), and Central Puerto (+10.6%).
US oil climbed to $39.75 a barrel on positive signals regarding the recovery in demand and expectations for further production cuts. The Brent closed at $42.19.