During the quarter, national fiscal revenues increased 31% year-over-year showing a deceleration as compared to the 36% recorded in the first quarter, while primary expenditures kept the expansion pace of the previous quarter and grew 32% year-over-year. Though we expect an acceleration for the third quarter, as a consequence of the elections that will take place in October.
The primary surplus for the quarter amounted to Ps. 6 billion, Ps. 1.6 billion lower than a year before. And after interest payments for Ps. 7.8 billion, the global balance was at Ps. 1.8 billion deficit.
Consumer prices maintained its growing pace increasing 2.4% in the quarter, as measured by the official index and 5.4% according to private estimates, while annual inflation as of June 2011 reached 9.7% and 21.6% respectively.
On the monitory front, the portfolios registration process in the second quarter was significantly higher than in the previous one, as a consequence of the international uncertainty, and as we get closer to the electoral process. We estimate that outflows were around US$6 billion compared to US$3.7 billion for the prior quarter.The Argentine Central Bank expanded the monitory base by Ps. 17.4 billion in the quarter and the exchange rate increased from Ps. 4.25 to Ps. 4.11 per US dollar during the quarter, representing a depreciation of 1.5%.Average interest rates paid by private banks increased during the quarter. Rates on term deposits in pesos for up to 59 days increased to 10.57%, 97 basis points increase from March 2011. The rates on overdraft ended the quarter at an average of 18.37% with a reduction of 81 basis points.Private sector deposits at the end of the quarter amounted to Ps. 296 billion with a 9.4% growth during the quarter, and a 35.6% inter annual increase. Term deposits increased 4.5% in the quarter while transactional deposits grew 13.3%.
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