¡Buenos días from Louse Point! This is the Rorshok Argentina Update from the 8th of August twenty twenty-four. A quick summary of what's going down in Argentina.


The week began with complications in the markets, with the country’s risk index soaring to over 1,700 points, its highest since March. Argentine stocks listed on Wall Street plummeted up to 9%, and bonds fell by up to 2%. Despite the turmoil, Manuel Adorni, the presidential spokesperson, assured the public that the government remains focused on their financial strategy and highlighted the improving inflation rates as a point of stability.

As we mentioned in previous episodes, President Milei’s administration moved a significant portion of the country’s gold reserves overseas to earn returns and potentially use the gold as collateral for bridge loans. Well, perhaps that’s why the Inter-American Development Bank approved a loan of almost 650 million dollars for the country, which is part of a larger agreement to provide an additional two billion over the rest of the year.

This Special Development Financing loan is intended to bolster public finances, stabilize the economy, and promote growth. Plus, it might help offset the effects of the dwindling international reserves, which have nearly hit a negative four billion.

Speaking of gold, Las Leonas, the Argentine women’s field hockey team, couldn’t beat the Dutch team at the Paris Olympics, and will compete for the bronze medal. They will face Belgium in their fight for third place.

Meanwhile, other Argentine athletes have had mixed results in events like kayaking and taekwondo, with some advancing to the semifinals and others falling short. In kayaking, Brenda Rojas and Agustín Vernice both secured spots in the semifinals, finishing second in their respective kayak heats. Vernice, who had the second-best time overall, expressed satisfaction with his performance but acknowledged that the competition will get tougher.

If being the most valuable company in Latin America were an Olympic sport, Mercado Libre would’ve won a medal or two. The leading e-commerce and payments company saw its shares soar nearly 11% after surpassing second-quarter earnings expectations, making it the region’s most valuable company at ninety billion, overtaking Petrobras. Marcos Galperin, the Argentine CEO and founder, celebrated the company’s 25th anniversary and this achievement.

Speaking of unicorns, the British outlet TechRound published a list of ten unicorns from Argentina. While agriculture remains a dominant industry, there’s a high rate of unicorns per capita, which includes fintech company Ualá, IT firm Globant, classifieds platform OLX, online travel agency Despegar, and news outlet Infobae. Follow the link in the show notes if you want to see the full list.

In other news, the government has expanded payment options for public transportation, ending the exclusive use of the SUBE card. With a new decree, users will be able to pay with electronic contactless methods on buses, trains, and subways. The development of these new payment systems and their implementation will take time, but the goal is to let people use various payment methods, similar to systems in Europe. The SUBE card will still be in use, especially for social tariffs and student tickets, but now it will be just one of several options for paying fares.

On that note, bus fares in the Buenos Aires metropolitan area will increase starting on the 12th of August. The minimum fare for a 0-3 km trip with a registered SUBE card will rise from 270 pesos to 370 (some twenty-eight cents in US dollars), while unregistered SUBE users will pay almost 600 pesos (forty-five cents in US dollars). Subway fares will also see significant hikes, though the SUBE network will continue to offer automatic discounts for multiple transfers within a two-hour period.

Car users don’t have it any easier in that regard. On the 7th of August, the tolls on national routes and some major access points to Buenos Aires increased again as part of a plan to adjust rates monthly in line with inflation. For instance, the peak hour toll for a standard two-axle vehicle on these routes will rise from 700 pesos to 800 pesos (sixty cents in US dollars).

Also related to drivers, the government is proposing a change to driver’s licenses so they won’t have expiration dates. The idea is inspired by systems in places like the US and Mexico City, aiming to reduce bureaucracy and corruption by making it entirely digital and cost-free.

Federico Sturzenegger, the Minister of Deregulation and State Transformation, mentioned that this new policy could be officially announced in about two weeks and that it will allow drivers to keep their licenses indefinitely, provided they submit a free medical certificate every five years confirming their physical fitness to drive. After the age of seventy-five, this check will be annual.

Another measure the government introduced has to do with encouraging dollar disclosure. A new regulation requires banks to accept damaged or marked US dollar bills, including older “small face” bills. The Central Bank will bear the cost of sending these bills to the US Federal Reserve to recover their value. To be accepted, bills must retain over 50% of their surface and have identifiable security features. This measure is aimed at small savers who can now deposit up to 100,000 dollars in special accounts without penalties, as long as the funds remain deposited or are used for documented investments by the end of twenty twenty-five.

Moving on, Fabiola Yañez, the former First Lady, filed a gender violence complaint against ex-president Alberto Fernández, alleging physical abuse and threats. Evidence of the alleged violence was found in text messages from Fernández’s secretary’s phone, which were seized during an unrelated investigation. Fernández has denied the allegations.

Another investigation going on has to do with the Gran Chaco forest, the second-largest forest in South America. The non-profit news organization Inside Climate News published an in-depth piece about how the Chaco provincial legislature passed a law allowing extensive deforestation, sparking outrage and a legal complaint from the Argentine Association of Environmental Lawyers. They allege it’s a “deforestation mafia” involving provincial officials and businesses profiting from clearing the forest. The law threatens vital ecosystems and Indigenous communities, with deforestation driven by agriculture, soy production, and the tannin industry. You can find a link with more information in the show notes!

Meanwhile, the national film industry is losing protections. The Milei administration has introduced new restrictions on state funding, where the National Institute of Film and Audiovisual Arts, will only cover 50% of film production costs. The government’s new decree aims to cut subsidies for films that don’t attract viewers, citing that many subsidized films in twenty twenty-three had fewer than 1,000 viewers while consuming nearly half of the funding. Additionally, filmmakers who receive funds will be barred from applying the following year.

For the time being, rest assured that there is no lack of local films and series to enjoy. The American magazine Variety published a piece this week titled Netflix Unveils twenty twenty-four ‘Made in Argentina’ Lineup. One of the standout announcements is the adaptation of Mafalda, the iconic comic strip character created by Quino, which will be brought to life in an animated series by Oscar-winning director Juan José Campanella. Another major highlight is El Eternauta, a drama based on the famous graphic novel, starring Ricardo Darín.

Speaking of Netflix, Diego Lerman’s new Netflix film, The Man Who Loved UFOs, will premiere at the San Sebastián Film Festival, competing for the Golden Shell. The movie is based on the life of Argentine journalist José de Zer, known for his sensational reports on paranormal phenomena during the nineteen eighties. De Zer, often accompanied by his cameraman, fabricated stories about UFOs, gnomes, and other bizarre occurrences, which captivated audiences on Argentina’s popular news show Nuevediario. The film stars Leonardo Sbaraglia and revisits some of De Zer’s most infamous fabrications, highlighting his influence on later TV journalism.

Aaand that’s it for this week! Thank you for joining us!

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¡Nos vemos la próxima semana!