It estimates that the 50 most enormous fortunes in Argentina, all of them over $300 million, through the participation they have in their multiple companies originate around 14% of the GDP with a strong presence in the fields of energy, telecommunications, pharmaceutical business, retail and financial intermediation.
The conflict between mayors of the ruling party PJ that threatens the company’s concession could ended in another multimillion dollar lawsuit that could cost Argentina $16.5 billion.Reality shows that Argentina always pays. Despite its bad reputation as a payer, it has already paid out billions for expropriations, change of contracts into local currency, and debt in default in international courts, and has at least $8.75 billion in lawsuits pending.
SanCor is negotiating with the BAF Capital investment fund, one of its biggest creditors, which aims to reincorporate the dessert and yoghurt business that would represent an injection in its monthly turnover of around $1 million. It’s a simple way to ensure that the debt will repay. At the same time, they save logistics costs and can close deals with producers to buy raw materials.
In a joint statement, and for the first time, the three clubs of foreign debt creditors met to reject the last Argentine offer, make a counter-proposal. The legal aspects agreed upon between the country and the creditors. However, economic differences remain. The bondholders contemplate a coupon of 3.4% average and total debt relief of $ 35 billion in 9 years. The parity will be in the order of $56.5 for each bill of 100, taking an exit rate of 10%. The difference is about three dollars with the last Argentine offer of 53.5 dollars.
The province of Buenos Aires is changing its funding profile with a strategy to capture resources for specific areas: health and infrastructure programs. In the first semester, they obtained $124 million in financing lines with multilateral credit organizations. It estimates that this amount will rise to $285 million by 2020.
Businesses in the construction sector are among those most affected by the paralysis imposed by the pandemic. So far this month, only 45% of works, both public and private, have been maintained in regular activity, and in June more than 80% of construction companies received no building contracts.
The local production of biosimilar drugs has a very high strategic value for Argentina, which is a pioneer in Latin America. Since the introduction of the first biosimilar in Argentina in 2014, the national health system has had a cumulative direct saving of $65.7 million in treatment costs. Through the substitution of high-cost biological drugs for products of equal quality, with prices between 15% and 25% lower, they allow more patients access to therapies for chronic diseases, such as cancer or autoimmune diseases. More than 35,000 patients have received such treatments, and the number is growing.
The Ministry of Economy closed last week with a goal fulfilled: of the $6.9 billion of dollar securities under local law that it sought to exchange for new peso instruments, it managed to convert $4.1 billion into CER-adjusted bonds maturing in 2023 and 2024. The conversion of foreign currency securities into peso debt is one of the financial strategies deployed by the Ministry of Finance that could reach $20 billion. Those investors who do not enter into the exchange driven by the law will see the payment of their maturities postponed to after December 31, 2021.
The acceptance of 58.4% of the $1 billion renegotiation offer that expires on March 30 clears the financial picture for YPF until the end of the year. The company will wait for the final closing of the exchange transaction on July 30 and then begin designing a new deal for December this year and February 2021 to place a further Negotiable Obligation (or similar) for investors who did not accept the current proposal. If no more interested parties entered before the end of the month, a total of some $420 million would have to renegotiate.
More than 272,000 employees lost their jobs between February and May of this year. The number of workers contributing to the Argentine Integrated Social Security System (SIPA) fell by almost 1.75 million in the last year. The year-on-year contraction of employment reached 5.1% in May. It estimates that the unemployment rate will exceed 15% in the second half of the year and that it will close at around 13.5% in 2020.