The total portfolio of pledge loans fell 17% in October compared to the same month of 2018, with an amount of AR$82.8 billion ($1.4 billion), essentially affected by high interest rates and the exchange rate, according to a report prepared by First Capital Group.
The ADRs of Argentine companies lost up to 4.7% on Wall Street on Monday, as was the case with the Central Puerto papers. Public titles also lost ground and country risk advanced 21 units to 2463 points.
Mining exports will grow slightly in 2019 (1%) due to higher silver production and increases in the price of precious metals, while the outlook for 2020 points to a 3.9% increase in all minerals with lithium as the protagonist, according to a report by the consultant Abeceb.
Supermarkets and mass consumption companies with a high level of import project an average dollar during 2020 at 75 pesos which means a devaluation close to 20%. The bulk of the companies start from an average dollar value of 80 pesos and there are scenarios of some 50% devaluation in some other companies.
In the third quarter of this year the amount of the urban population living in households where they suffer from hunger or severe food insecurity increased from 7.9% to 9.3% on a year on year basis.
The 2019 budget expected inflation of 23 points in Argentina, but shortly before the end of the year it is estimated at 55%.
October inflation slowed to 3.3% according to the latest report from the National Institute of Statistics and Census (Indec). With this data, the accumulated of 2019 reached 42.2% and in the last twelve months 50.5%. The decline in inflation in October was driven, to a large extent, by lower increases in the food sector: they rose 2.5% compared to 5.7% in September.
The National Gas Regulatory Entity (Enargas) approved on Thursday the compensation for the oil companies for the differences between the price paid by the distributors and the value of the natural gas included in the tariff schedules in force between April 1, 2018 and March 31 this year. The original debt amounted to 19.5 billion pesos, but they will end up transferring 24.5 billion since the amount was updated by the passive rate of the National Bank.
The Argentine industry used in September only 57.7% of its installed capacity, representing 3.4 percentage points less than in the same month of 2018, according to the National Institute of Statistics and Census (Indec).
Argentina must repay $5 billion by the end of 2019. It doesn’t have much to work with. While the country’s foreign reserves total a still somewhat robust $43 billion, that figure shrinks markedly once untouchable assets such as dollar deposits of everyday Argentines and a credit line from China are stripped out.