With the announcement of the agreement on debt between creditors and the government, dollar bonds shot up to almost 9.6%. The country risk fell 9.7%, closing at 2,027 points.
Day: August 5, 2020
Revenue dropped 13% in real terms in July
The national government's revenue in July was up 24% year-on-year in nominal terms. According to own calculations based on estimated inflation for last month of around 2.2%, there was a real fall of 13% compared to the same month in 2019, a lower figure than in previous months.
A partnership between Shell and TGS to build a gas plant in Vaca Muerta
The Argentine subsidiary of the Anglo-Dutch oil company Shell announced yesterday an agreement with Transportadora de Gas del Sur (TGS) for the construction of a new gas treatment plant in the Bajada de Añelo block. The contract will be for a minimum term of two years and consists of the provision of midstream gas dehydration, filtering, regulation and measurement services with a capacity of up to 1 million cubic meters per day. The gas pipeline is 150 kilometres long, crosses 30 productive areas of the Vaca Muerta formation, and will allow transportation of up to 60 MMm3/d, which will condition at the plant built in Tratayen, before injection into the regulated transportation systems.
Government seeks to negotiate with private investors who hold $20bn in bonds
The government will begin an accelerated process of contacting as many individual investors as possible, who are not represented by any of the three groups of bondholders who will sign the final agreement and who hold between 15 and 20 billion dollars. The process will end on August 24, and the new bonds will issue on September 4th.
Government supports $100 billion agriculture export plan
The Argentine Agribusiness Council (CAA) submitted to the Government its proposal to export for $100 billion. In the CAA they argue that, with the promotion and encouragement of investments, an export plan, a law for that purpose and fiscal and financial stability for ten years, the country can jump from $65 billion in exports to $100 billion. Also, it would generate roots in the interior and 700,000 new jobs, more than 200,000 of them directly contributed by agribusiness.
Argentina Económica 