Argentina promises debt restructuring with bonds
The IMF has granted a loan of 680 million euros to face Covid-19
Just 48 hours after the health crisis was decreed, Prime Minister Elyes Fakhfakh announced a package of measures worth 800 million euros to alleviate this situation, all backed by the International Monetary Fund.
This international organization also announced that during the pandemic the highest inflation in the history of the country has been generated since its independence in 1956.
In accordance with this scenario, the agency has granted a new loan of 680 million euros, which will be aimed at assisting victims, which according to their estimates will produce a 4.3% contraction in the economy during 2020.
More problems are added to the crisis
With the aim of preserving jobs in terms of workers’ incomes and reducing the financial burden on citizens, the Argentine president announced a dozen of law decrees that include the retention of one day’s salary for public and private sector employees and fines of up to 50 dinars equivalent to 15 euros against violators of preventive measures.
However, according to a study carried out by the employers, 93% of the companies paid their March wages, while only 17% claimed to be able to cover the expenses for the month of May.
K.Villarroel
Source: bancaynegocios
