News of economy

CHUBUT DEBT CRISIS

No end in sight to Chubut’s debt crisis as workers pay price

12-10-2019 11:23 Driven by crushing provincial debt and economic mismanagement, public workers in Chubut are on strike as they face the second so-called “staggered pay” situation in two years.

by Lucas Robinson

ECONOMIC DOWNTURN

World Bank: Slowdown in Latin America 'more self-inflicted than imported'

10-10-2019 15:19 World Bank predicts Argentina's economic contraction will deepen this year to 3.1%.

ELECTION 2019

Fernández, Martínez hail Argentina and Uruguay's 'indissoluble' bond

08-10-2019 09:45 Frente de Todos candidate declares he wants country to echo achievements of neighbouring country as he meets Frente Amplio presidential hopeful in Buenos Aires. Argentina and Uruguay will both hold general elections on October 27.

BLOOMBERG

Stock and bond trading decimated in once red-hot Argentina

07-10-2019 16:59 Assets under management at local banks and brokerages have plummeted 25% since the primaries. Stock trading has fallen by half, and local bond volume is down by two-thirds.

BLOOMBERG

YPF should return to focusing on oil, says Sergio Massa

07-10-2019 14:36 State-controlled energy company YPF SA should go back to its core business of pumping oil and stop investing in other projects like scooters, according to Sergio Massa.

CAMPAIGN WATCH

Yes, we can. But can we?

05-10-2019 10:59 The political world upside down: an incumbent promises the impossible, the challenger urges caution.

by Marcelo J. Garcia

ELECTION 2019

Poverty rate casts shadow over Macri's re-election hopes

04-10-2019 12:22 As INDEC reveals 35.4% of Argentines are living in poverty, President Mauricio Macri is struggling to address another problem casting a shadow over his re-election hopes.

PRESIDENTIAL ELECTION

As Argentina struggles, Uruguay worries about its own economy

04-10-2019 07:00 With economic instability plaguing its neighbour across the River Plate, Uruguayans are wondering how keenly the downturn will be felt at home.

Bloomberg

Government says it has met targets to receive more IMF money

30-09-2019 17:58 “Argentina, as I’ve said many times, has complied with all targets required for this disbursement to happen,” says Central Bank chief Guido Sandleris.

ECONOMIC INDICATORS

Economic activity grew 0.6% in July year-on-year, says INDEC

27-09-2019 00:46 Small rise on last July's figure thanks to agriculture; economic activity has contracted by 2.1% since January, according to statistics bureau.

PAYMENTS

Difficult to find 'quick path forward' for Argentina, says IMF

26-09-2019 15:21 IMF officials refused to say Thursday when it will disburse last US$5.4 billion of loan to Argentina that was originally planned for mid-September, as reports suggest World Bank and Inter-American Development Bank may also delay payments.

ARGENTINA & THE IMF

New IMF chief meets briefly with Finance Minister Lacunza

26-09-2019 09:29 "I look forward to working with the authorities when I assume my duties on October 1. Argentina is an important member of the IMF and we want it to do well," Kristalina Georgieva posts on Twitter after meeting Finance Minister Hernán Lacunza.

NEW LEADERSHIP

Bulgarian economist Kristalina Georgieva chosen to be IMF's new leader

25-09-2019 17:59 Georgieva, a top official at the World Bank, was chosen by the IMF’s executive board on Wednesday to become the body's new managing director. She succeeds Christine Lagarde.

BLOOMBERG

IMF’s Lipton says relationship with Argentina ‘may have to wait’

25-09-2019 15:27 "Argentina’s situation right now is extremely complex," Acting IMF head tells Bloomberg.

BLOOMBERG

Lagarde: IMF did 'best we could' given Argentina's 'difficult situation'

25-09-2019 12:55 Former IMF managing director and soon-to-be European Central Bank chief says the IMF is often unfairly blamed when things go awry.

IMF CREDIT-LINE

IMF: We will continue to support Argentina in its 'difficult situation'

24-09-2019 20:31 IMF acting chief David Lipton said he had "a constructive meeting" with President Mauricio Macri, Finance Minister Hernán Lacunza and Central Bank Governor Guido Sandleris in New York on the sidelines of the United Nations General Assembly.

ECONOMIC TEAM IN NYC

Lacunza, Sandleris look to charm investors, IMF in New York

24-09-2019 10:34 With President Mauricio Macri mixing with world leaders at the UN General Assembly, finance minister and Central Bank chief are looking to persuade key stakeholders that Argentina deserves their backing.

BLOOMBERG

Hernán Lacunza: Government's debt plan needs approval from opposition

20-09-2019 16:49 Government sent a bill to Congress late Thursday to kick start talks around extending maturities on local law bonds to alleviate fears of a looming default.

IMF BAIL-OUT

Lagarde: Argentina crisis would have been much worse without IMF

20-09-2019 16:08 Crisis would have been much worse had the International Monetary Fund not stepped in with a massive rescue programme, outgoing IMF chief declares in interview.

ECONOMIC INDICATORS

INDEC: Unemployment rose to 10.6% in second quarter

19-09-2019 19:05 Around 2.5 million people now out of work. INDEC also reveals economic activity recorded a slight recovery of 0.6% in the second quarter.

FINANCIAL POLICY

Brazilian Central Bank cuts interest rate to record low

19-09-2019 16:30 Monetary authority slashes interest rates to a record low 5.5% for the second time in less than two months, as Latin America's biggest economy expresses concerns over "more intense slowdown in the global economy."

Global economic outlook

OECD: Trade tensions slam brakes on global economy

19-09-2019 09:41 In an update to its economic forecasts from May, the Organisation for Economic Co-operation and Development cuts global growth forecast for year to 2.9%, predicts 2.7% contraction for Argentina.

ECONOMIC MEASURES

Government rises petrol prices in wake of Saudi Arabia attack

18-09-2019 22:27 Four-percent increase in the price of petrol authorised, a month after Macri administration ordered them frozen for 90 days.

BLOOMBERG

Central Bank raises rate floor to 78% as prices soar

18-09-2019 21:27 The rate floor will lower to 68% for all of October, while Central Bank officials project that Argentina’s monetary base will grow at a monthly rate of 2.5% in September and October.

BLOOMBERG

With controls in place, Central Bank cuts 85% rate, buys dollars

18-09-2019 14:08 Institution's move to choke off dollars hands peso some breathing room, with Central Bank buying dollars for first time in seven months.

BUDGET PROPOSAL

Lacunza admits economic results have been 'lower than expected'

16-09-2019 17:35 Addressing Congress, where he was presenting the government's draft 2020 Budget proposal, the new minister put the record down to a "combination of inheritance, miscoordination and external factors."

CREDIT-LINE

IMF likely to withhold loan tranche for Argentina until policy fog lifts

15-09-2019 08:31 Next US$5.4 billion disbursement is scheduled for on or after Sunday, but IMF will postpone until greater clarity appears over likely policy landscape moving forward.

IMF CREDIT-LINE

Reports: IMF to delay Argentina's next loan tranche until after election

13-09-2019 13:39 Local and international outlets says officials evaluating how to push the next US$5.4-billion tranche back, with IMF prepared to adopt "all possible bureaucratic measures" to "stretch deadlines as much as possible."

CREDIT-LINE

Finance Minister Lacunza to meet with IMF in Washington next month

12-09-2019 15:38 An IMF spokesman on Thursday said the institution was still in negotiations with Argentina, but noted that market conditions and political uncertainty had cast a cloud over the talks.

BLOOMBERG

Argentines make 7% returns in minutes thanks to capital controls

10-09-2019 11:19 One system to circumvent the controls is paying a return of seven percent in a matter of minutes, and it’s completely legal. The profit derives from the difference between the so-called “MEP dollar” – which entails buying and selling bonds in different currencies – and the official exchange rate.

ELECTION 2019

Alberto Fernández: Difficult times ahead due to 'decimated' economy

10-09-2019 07:48 "If I win, I know that the first years of my management will be difficult because I will receive a decimated economy," declares Frente de Todos presidential candidate.

REVISED FORECASTS

Local economists warn of deeper slump as crisis continues

07-09-2019 01:24 GDP predicted to contract by 2.5% this year, with banks also revising down forecasts for 2020.

JOBLESSNESS

As crisis bites, Argentina’s young adults again face risk of jobless future

07-09-2019 00:37 More than 20% of Argentines aged under 30 are unemployed and the situation looks set to worsen in the coming months, with joblessness disproportionately affecting women.

by Lucas Robinson

IMF LOAN

'We've complied with everything' – Macri confident over next IMF loan tranche

05-09-2019 13:55 The IMF is currently assessing whether to pay out a further US$5.4 billion to the government, the latest phase of its record US$56-billion loan to Argentina.

INTERNATIONAL MONETARY FUND

Will the crisis in Argentina hurt the IMF's reputation?

05-09-2019 09:47 Experts say a fundamental mistake by the IMF was to push for too-strict cuts even when the Argentine economy entered recession.

FIRST COMMENT ON MEASURES

Macri tells business leaders capital controls are only 'emergency' measure

04-09-2019 16:16 "We don’t like these measures," president tells business leaders, adding that "they are only justified in an emergency and for a limited time."

ECONOMIC INDICATORS

New Central Bank survey predicts 55% inflation in 2019

04-09-2019 09:46 GDP anticipated to contract by 2.5% this year, survey of economists and consultancy firms reveals.

BLOOMBERG

The US$15 billion of distressed provincial bonds that no-one is talking about

04-09-2019 09:13 Argentina's provinces were among the most prolific issuers when international capital markets reopened to Argentina. By offering interest rates in excess of 9%, they were able to lure yield-hungry investors to little known and sparsely populated corners of the country.

BUENOS AIRES CITY

Bank queues return to BA as currency controls kick in

03-09-2019 08:03 Queues outside banks seen once again outside branches, as Argentines get used to new capital controls.

BLOOMBERG

Government and IMF in talks over September monetary policy target

03-09-2019 07:32 Gustavo Sandleris said the Central Bank had failed to meet its monetary base goals for July and August, allowing the total amount of cash in circulation to rise above its target of 1.34 trillion pesos.

LEGISLATION

Government to seek support before submitting bill to 'reprofile' local debt

02-09-2019 16:46 After talks with the legislative branches of the Cambiemos coalition, Executive decides to seek consensus with opposition lawmakers beforehand submitting project.

BLOOMBERG

Argentina returns to capital controls as Macri fights to survive

02-09-2019 09:16 Decision to impose currency controls represents a bitter irony for the pro-market President Macri, who set about dismantling them as soon as he took office in 2015.

CURRENCY CONTROLS

Lacunza: Currency controls 'necessary to avoid greater evils'

02-09-2019 08:52 "It is an uncomfortable measure for us that Argentina has already had," declares finance minister, who describes new restrictions as "transitory."

BLOOMBERG

'Selective Default': Standard & Poor's cuts Argentina’s debt rating

29-08-2019 20:40 “The Argentine government unilaterally extended the maturity of all short-term paper on August 28. This constitutes default under our criteria,” says ratings agencies.

CORRUPTION & THE COURTS

Boudou acquitted and convicted in unified trial over car purchases

29-08-2019 17:15 Former vice-president handed three-year suspended sentence for supplying false data for purchase of car, but is cleared of irregularities in the buying of 19 high-end vehicles dating back to when he led Economy Ministry.

BLOOMBERG

Carmen Reinhart: Full Argentine default is just a matter of time

29-08-2019 13:58 Harvard University economist Carmen Reinhart – who was also deputy director of the IMF’s research department during Argentina’s 2001 crisis – says the government’s re-profiling plan is already a default on domestic debt, which rating companies will likely promptly respond to.

ECONOMIC INDICATORS

Peso continues to fall, despite plan to delay debt payment

29-08-2019 12:50 National currency traded at the opening at 62.33 per US dollar, which marks a depreciation of almost 3.5 percent compared to Wednesday.

Bloomberg

To stave off default, Argentina asks bondholders for more time

29-08-2019 12:31 Argentina’s overseas bonds careened toward 40 cents on the dollar after President Mauricio Macri asked creditors for more time to repay them amid a growing economic crisis.

BLOOMBERG

Investors bank on IMF support as bets on a default grow

29-08-2019 09:19 IMF officials' decision to release more funding could determine whether Argentina enters a chaotic default in the next few months – or if the government gets more breathing room to shore up its finances and potentially seek a negotiated restructuring.

RESTRUCTURING

IMF says it will 'stand with Argentina' amid restructuring request

28-08-2019 22:50 "The Fund will continue to stand with Argentina during these challenging times," IMF spokesman Gerry Rice said in a statement.