While, the Buenos Aires stock market is trading lower in line with the trend of its foreign peers in the face of a drop in the price of oil.
The S&P Merval stock index of Buenos Aires Stock Exchanges and Markets (BYMA) lost 0.7%, to 92,375.97 pointsled by the trend of energy companies after accumulating an improvement of 4.44% last week.
The Oil prices plunged amid fears of lower fuel demand in Chinaafter the financial center of Shanghai was closed to curb a rise in COVID-19 infections, at a time when external markets were also keeping an eye on the resumption of peace talks between Ukraine and Russia.
The IMF approved on Friday the US$45 billion program that it signed with Argentina for the payment of the debt, after more than a year of negotiations, something that will allow the country to avoid default with the international credit organization.
Together with the agreement, which received 100% approval -the last vote was that of the United States-, the IMF board approved the disbursement of US$9.65 billion immediately. In addition, it gave the country the possibility of making the payment of the next two maturities without falling into default.
The reduction of the fiscal deficit, the rise in interest rates and the cut in energy subsidies are key requirements of the agreement, which does not require labor or pension system reforms.
“Finally, all the formal steps with the IMF were closed and now a new stage begins for Argentina, although what is coming is very difficult to comply with, but at least a breath of oxygen is achieved and a worrying ‘default’ is avoided,” he summarized. a banking analyst.
The agreement establishes a grace period of four and a half years, and extends disbursement payments to 10 years, so that the South American country will begin to pay off the debt in 2026 and end in 2034.
Operators affirmed that the new agreement with the IMF and the recent “time bridge” reached with the Paris Club are good news for the market, although investors continue to be immersed in growing doubts about the future of the local economy, amid the political tensions within the government coalition.
In terms of news from listed companies, Pampa Energía, one of the main energy companies in Argentina, is analyzing participating in two tenders in Ecuador to expand the supply of electricity through wind farms and a combined cycle plant, it told Reuters. the president of the company, Marcelo Mindlin.
For its part, on Wall Street, the ADRs of Argentine companies on the New York Stock Exchange closed with the majority of gains, on a day in which Transportadora de Gas del Sur led that lot with an increase of 5.5%.
On Friday, sovereign bonds denominated in dollars recorded increases of up to 2.6% after the IMF endorsed the agreement with Argentina, after four consecutive sessions in decline.
The main increases of the day were recorded by the Bonar 2030 (+2.6%); Global 2030 (+2.1%); and the Global 2038 (+2.1%).
Source: Ambito
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