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Montevideo, November 21st 2018 - 18:25 UTC

Argentina issues US$ 5bn in bonds to pay importers; some restrictions persist

Monday, December 28th 2015 - 07:31 UTC
Full article 6 comments
Agriculture Minister Ricardo Buryaile said earlier this week the government owed US$10 billion to importers. Agriculture Minister Ricardo Buryaile said earlier this week the government owed US$10 billion to importers.
The Bonar 2016 bonds issue offers a six percent interest rate and will be paid out in eight monthly installments between May 2016 and December 2016. The Bonar 2016 bonds issue offers a six percent interest rate and will be paid out in eight monthly installments between May 2016 and December 2016.
Production minister Francisco Cabrera said that “sectors such as textiles, footwear, spare auto parts, metals and toys will still be safeguarded by the system.” Production minister Francisco Cabrera said that “sectors such as textiles, footwear, spare auto parts, metals and toys will still be safeguarded by the system.”

The Argentine government will issue bonds worth US$5 billion to be auctioned this week to pay back debt from imports during the previous Cristina Fernandez administration, according to a resolution published by the current government.

 The figure marks a 150% increase on the US$2 billion that president Mauricio Macri’s administration had estimated for the bond issues, but it is still less than the most pessimistic government estimates of the debt held with importers.

Agriculture Minister Ricardo Buryaile said earlier this week the government owed US$10 billion to importers.

The Bonar 2016 bonds issue offers a six percent interest rate and will be paid out in eight monthly installments between May 2016 and December 2016. The bonds will be issued under local legislation, keeping them safe from any possible court action by holdouts or “vulture” funds trying to block their payment.

Subscribing to the bond will be optional for all those who are owed money. The government is also offering importers the alternative option of scheduled cash payments.

Macri’s administration also gave further details on how the new system of imports that was made official last week will operate. Production Minister Francisco Cabrera said that “sectors such as textiles, footwear, spare auto parts, metals and toys will still be safeguarded by the system.”

The new Integral System for Import Monitoring (SIMI) will keep 1,400 types of products under a system that does not issue automatic import licences in order to protect local businesses. However almost 90% of products will be allowed into the country automatically, Cabrera said.

The new administration argued that previous restrictions were largely in place to artificially prop up the country’s trade balance. Former Economy minister Axel Kicillof, meanwhile, has fired back at that criticism saying that it is normal for the Central Bank to not pay importers right away.

Top Comments

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  • willi1

    “The bonds will be issued under local legislation, keeping them safe from any possible court action by holdouts or “vulture” funds trying to block their payment.”

    it is a payment - and NML and co. will find a way to disturb it. me too.

    Dec 28th, 2015 - 08:07 am 0
  • Conqueror

    Words of warning. It's an argie bond. Are you owed money? Subscribe to this bond so that you can give the government money and pay yourself back with your own money at the same time. And all under the wonderful argie local legislation. A bond for the truly stupid.

    Dec 28th, 2015 - 12:08 pm 0
  • chronic

    Can't be a member of the 1st world if you aren't a member of the WTO in good standing and if you don't pay your debts.

    Your trade policies are noncompliant.

    You are still trying to beat your creditors.

    Dec 28th, 2015 - 02:09 pm 0
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