Gaucho Group Holdings Responds to Positive Economic Shifts in Argentina

Leadership Discusses the Impact of Improved Financial Conditions on Real Estate Operations

MIAMI, FL / ACCESSWIRE / April 19, 2024 / Gaucho Group Holdings, Inc. (NASDAQ:VINO), a company that includes a growing collection of e-commerce platforms with a concentration on fine wines, luxury real estate, and leather goods and accessories (the "Company" or "Gaucho Holdings"), today announced its strategic response to recent economic developments in Argentina. As the gap between Argentina's parallel and official exchange rates narrows, creating a more stable economic environment, Gaucho Holdings projects significant positive impacts on its real estate operations in the region.

Amid recent financial reports indicating a narrowing gap between the parallel and official exchange rates in Argentina, Gaucho Group Holdings, Inc. acknowledges the potential shifts in the economic landscape. Since peaking at AR$1,250 on December 23, 2023, two weeks after President Javier Milei took office, the blue rate has fallen significantly, bringing the gap with the official dollar rate (currently AR$869.7) to about 13%. In November 2023, the gap was close to 200%. With this potential impending parity, significant changes in the banking sector's approach to mortgages are anticipated.

Gaucho Group Holdings' Chief Operating Officer (Argentina Operations), Sergio Manzur Odstrcil, shared his insights: "We are observing crucial economic indicators that suggest a positive shift within the next 6 to 8 months. As inflation decreases, we anticipate the unification of the dollar value in the market, which we expect will prompt Argentine banks to reintroduce mortgage lending. This development could potentially invigorate the real estate sector, increasing both sales and property values. Our observations are aligned with broader financial trends where sustained inflation reduction and economic stabilization may soon facilitate the return of long-term mortgage loans, which have been absent for years."

Scott Mathis, CEO and Founder of Gaucho Group Holdings, commented on the real estate prospects: "The alignment of decreasing inflation with the stabilization of Argentina's financial framework forms a favorable foundation for our real estate ventures. Particularly, our properties at Algodon Wine Estates, and others in San Rafael and Cordoba, are projected to fetch premiums well above current market rates in the coming months. This adjustment is supported by the anticipated increase in real estate activities and the potential shift in banking practices to offer more favorable lending rates. We are poised to significantly contribute to and benefit from these transformative developments in Argentina's economic landscape."