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China aids Argentina: a billion dollars in Yuan pledged by end of the year

Monday, September 8th 2014 - 06:35 UTC
Full article 43 comments

Argentina's central bank chief, Juan Carlos Fabrega, met his Chinese counterpart Zhou Xiaochuan in Basilea, Switzerland on Sunday to discuss how a currency swap worth billions of dollars will be put into action, the Argentine monetary authority said. Read full article


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  • La Patria

    Borrowing money and reneging on the debt to US hedge funds is one thing, doing the same to China is something completely different..........I can see one of Maximo K's fingers appearing in someone's chop suey takeaway in a few years time.

    Sep 08th, 2014 - 09:30 am - Link - Report abuse 0
  • Captain Poppy

    Beggars, beggars and nothing but beggars. Did you of the Chin supply the KY? All you campora's are too young and stupid to understand the level of control you are entering. Asian financial Have you noticed how many people in BsAs city are taking Chinese language Chinese?

    Sep 08th, 2014 - 09:31 am - Link - Report abuse 0
  • Briton

    If she grinned any wider she would crack

    Sep 08th, 2014 - 10:03 am - Link - Report abuse 0
  • yankeeboy

    That high interest Yuan Loan (swap) isn't going to help Argentina pay for Fuel, Car Part Imports or Monstanto Seed.
    Plus it's a drop in a very large bucket.
    2015 will prove even more interesting to watch from afar.

    Sep 08th, 2014 - 10:29 am - Link - Report abuse 0
  • GeoffWard2

    Oh, how you are grasped in the claws of the tiger!

    Sep 08th, 2014 - 10:33 am - Link - Report abuse 0
  • Buzzsaw

    “During the meeting, the head of the People's Bank of China conveyed to Fabrega his country's support to Argentina in its dispute with bondholders in a New York Court,” Argentina's central bank said in a statement.

    So lets get this right, the head of the Chinese bank who is just about to lend Argentina money, supports the fact that Argentina refuses to pay their debts to someone who lent them money..

    FFS you couldn't make this comedy up.

    Would like to see if this press release reads the same from the Chinese side of things.

    And the Argentines wonder why no one takes them seriously.

    Sep 08th, 2014 - 10:58 am - Link - Report abuse 0
  • Klingon

    80% of the funds go to Argentina, then 20% go directly to an account in the Seychelles.
    This doesn't help anything continually borrowing money when productivity in in the crapper.
    Just buys the toxic hag more time and choripans for La Campora.

    Sep 08th, 2014 - 11:26 am - Link - Report abuse 0
  • yankeeboy

    The gov't is hoping the ever growing recession (I think technically its really a depression but who's counting) will keep inflation under 50%.

    Can you imagine?

    Crazy critters

    Sep 08th, 2014 - 11:53 am - Link - Report abuse 0
  • 4n conTroll

    Soros, China, and Russia. That's a lot of money. Meanwhile Europe continues to plunge back to historical form (war and ethnic cleansing), and NorthAmoland continues to lose control over Latin America, and Russia and China are getting up and warning their time is up.


    Why is it OK to learn English but not Chinese? Bit racist much??

    Sep 08th, 2014 - 01:45 pm - Link - Report abuse 0
  • Buzzsaw

    3 wise monkeys....the saviours of Argentina, until they want their pound of flesh.

    Sep 08th, 2014 - 02:09 pm - Link - Report abuse 0
  • yankeeboy

    Soros, China, and Russia. That's a lot of money.

    That makes no sense, please explain.

    Soros isn't going to loan Argentina money
    China's loan is for chinese goods
    Russia? Que? Their economy is in a tailspin about as bad as yours.
    I hear chicken has gone up 600% in a month in some of their cities.

    Sep 08th, 2014 - 02:21 pm - Link - Report abuse 0
  • Pugol-H

    If they were going to use the money for investment & growth it would be one thing, however I suspect this will be used to fund a collapse (for a while at least) and fatten offshore bank accounts.

    And will still have to be paid back, one way or another.

    Which is when Argentina gets taken to the cleaners, bye bye dead cow.

    By which time CFK & Co are long gone “offshore”.

    Script written!

    Sep 08th, 2014 - 04:56 pm - Link - Report abuse 0
  • nigelpwsmith

    The Chinese are wise enough to ensure that the 'loan' is solely for the purchase of Chinese goods. However, these goods would have been purchased anyway and the funds that would have been used for this will be diverted to some off-shore account belonging to the Mad Witch.

    I seriously doubt the figures for the Central Fund reserves. They claim that they have $28.4 Billion, but if that was true, the Chinese would want to know why they are being asked to extend credit?

    The truth is that by entering into this deal, the Chinese will get their hands on the oil reserves. Those already found and those yet to be found and Argentina will become a vassal state of China.

    Sep 08th, 2014 - 05:08 pm - Link - Report abuse 0
  • ChrisR

    The Yuan, what's it good for: 'absolutely nothin' '

    Apologises to Edwin Star.

    Sep 08th, 2014 - 06:24 pm - Link - Report abuse 0
  • Jack Bauer

    By the smile on Xi Jinping's face, I'd say CFK gave him the full expensive BJ, though...

    Sep 08th, 2014 - 07:01 pm - Link - Report abuse 0
  • Briton

    Well, whatever she has got, he will

    Sep 08th, 2014 - 07:11 pm - Link - Report abuse 0
  • Lou Spoo

    As pointed out in the WSJ in July.

    “The swap doesn’t resolve the underlying economic problems that are draining reserves nor can the yuan be converted into other currencies”

    Sep 08th, 2014 - 07:15 pm - Link - Report abuse 0
  • Briton

    Will Argentina collapse before XMAS and will the people finally get rid of her.

    Sep 08th, 2014 - 07:18 pm - Link - Report abuse 0
  • Room101

    18. Briton.
    Sobering thought though is that those that come after her inherit her legacy.

    Sep 08th, 2014 - 07:33 pm - Link - Report abuse 0
  • Leiard

    Melconian: “The agreement with China is irrelevant to the country's problems”

    Former head of SIDE Miguel Angel Toma said “We are facing a brutal transfer of sovereignty”

    Sep 08th, 2014 - 09:07 pm - Link - Report abuse 0
  • yankeeboy

    20. Sometimes I wonder why news articles take so long when its been so obvious for so long.

    Sep 09th, 2014 - 01:37 pm - Link - Report abuse 0
  • ilsen

    The Chinese will be the ultimate winners in this. They have deep pockets and long, long-term plans. Cristina has a very short-termist approach and is too busy 'fire-fighting' to see the bigger picture.
    The Chinese are great strategic thinkers and wouldn't be involved if the didn't believe the eventual outcome was not in their long-term interests.
    They are not your 'friend' Cristina, and are certainly not interested in philanthropy when it comes to Argentina.
    I bet she hasn't read the small-print.

    Sep 09th, 2014 - 03:23 pm - Link - Report abuse 0
  • yankeeboy

    22. I've never understood why so many people think that the Chinese are clever, they are buyers and lenders of last resort. That's it.
    They have no morals, they buy from every ruthless dictator when no one else will touch them.
    The Chinese are going through a very rough patch, their economy is sinking fast and I am not sure they know how to get themselves out of it without bringing the whole country into civil unrest.
    We shall see in the next few years if they're successful.
    My gut tells me they won't be.

    Sep 09th, 2014 - 04:35 pm - Link - Report abuse 0
  • ilsen

    23. That's an interesting take on the subject. Not one I completely agree with but interesting none the less.

    I agree with first paragraph pretty much, morals etc.
    ... and I wouldn't be surprised if any civil unrest wasn't dealt with by violent repression. They have 'form' for this and will ignore any UN complaints.

    However, I don't feel their economy is likely to tank though. Might take a bit of a battering for a while, but isn't investing/buying up around the world their diversification strategy (amongst other things)??

    Sep 09th, 2014 - 05:05 pm - Link - Report abuse 0
  • yankeeboy

    24. They don't have enough reserves to mitigate the loan disaster they have coming.
    They have a lot off off the books debt and worthless inventory plus their housing market isn't going to recover anytime in the near future so 3 generations of wealth is gone in that deflating bubble.
    Their economic/trade numbers would make INDEC blush with embarrassment. The say they're exporting but when you add up the countries that they are importing to the numbers don't add up and they've not added up for a very long time.
    They're in a pinch, banks have to keep loaning to companies that will never pay them back. In a legitimate country their banks would be insolvent. And even U$2T isn't enough to fix it.
    Wait and see.

    Sep 09th, 2014 - 05:30 pm - Link - Report abuse 0
  • ChrisR

    TDC claims, via BsAs Herald, “that up to USD 800M will be transferred from china by the end of the year”.

    It is only when you read the article that it becomes clear it is still in Yuan.

    But doesn’t it look good in the headline?

    Ha, ha, ha.

    Sep 09th, 2014 - 06:16 pm - Link - Report abuse 0
  • Jack Bauer

    Have just heard that the Chinese have already started the construction of a Space Research Base in Neuquén, on a piece of land leased to them, by the Argies, for 50 years, and CFK is already worrying that it might be used for military purposes.....
    Nice Chinese...don't worry, they have “conscience” .... isn't that what some 4n moron posted the other day ?....did CFK think that a BJ for Xi Jinping would be enough ?? the problems with the Chinks are only just starting....

    Sep 09th, 2014 - 06:36 pm - Link - Report abuse 0
  • MagnusMaster

    @23 They are clever enough to put a “research base” in Neuquen. It will be interesting to see what happens to the world economy if and when China goes kaput.
    @27 CFK isn't worried, it's everyone else who is worried, though they are more worried about them getting bombed by the USA if there is a war with China than of a Chinese takeover. What are they smoking? Nobody seriously considers a war between the USA and China.

    Sep 09th, 2014 - 07:52 pm - Link - Report abuse 0
  • yankeeboy

    China needs the USA much more than the USA needs China. If there was a war all we'd have to do is nationalize the debt we owe them and stop all imports.
    War over.

    Sep 09th, 2014 - 07:56 pm - Link - Report abuse 0
  • Captain Poppy

    800 million dollars...remind me of when I toss coins in the collection cups on coffee counters. I almost PMSL when I read the article in the Herald and it mention that Argentina purchased 20 million in U$.........was the real or for g0vernment travel to NYC?

    “Argentina can send pesos in exchange for the yuan”

    They are currently using KY jelly, when will they stop using that with the RG's?

    Sep 09th, 2014 - 09:01 pm - Link - Report abuse 0
  • CabezaDura2

    My advice is to pick with a pinch of salt these stories. Remember that the American sources in intelligence are not even mentioning this story.
    Argentines in general elaborate any amount of conspiracy theories when foreigners go and buy land and do stuff behind the gates.

    Tompkins purchased great amounts of lands and farms for conservation of wildlife and donation and they will invent any sort of stuff that he is bottling water in secret and taking it away to the US. I prefer much better that a foreign philanthropist or an entrepreneur buys it and invests in the zone and employees ppl, that to have the politicians pass a law decreeing that no foreigner can buy more than 5000 hectares, then nationalize the land, divide the land and buy it for peanuts themselves. Like will happen after this well intended (naive) man is dead.

    I have heard so many stories they make up from a secret RAF air bases in Patagonia to the Chinese having a missile launcher in Neuquen. If the chinese really want to bother the US, they would put one in theirr much closer to the US allies like Venezuela or Cuba.

    Then they wonder why nobody doesn't invest in Argentina.

    Sep 09th, 2014 - 09:12 pm - Link - Report abuse 0
  • yankeeboy

    CD. When I lived there everyone was saying the USA was trying to steal water from some deep underground reservoir in the Tri-State Area.
    No matter how I explained to them that we don't need it, its too expensive to transport, if we really needed water we'd get it from Canada, they weren't buying it.

    Sep 09th, 2014 - 09:25 pm - Link - Report abuse 0
  • CabezaDura2

    Yeah I know, its ridiculous and the worst thing is that you end up chasing away anybody that wants to invest in Argentina. So you end up having lawyers from Buenos Aires paying peanuts for multimillion farms and estates in Patagonia and elsewhere as the market is super limited.

    Sep 09th, 2014 - 09:35 pm - Link - Report abuse 0
  • yankeeboy

    33. I think the national registry of foreign ownership the Ks started 5-7 yrs ago is what scared foreigners away from buying property. Its a nice list to use when they begin the confiscations.

    Peso back up to 14.50/1. All of these new restrictions are killing them. It won't be long before the gov't rate is devalued again.
    I'll be really surprised if you don't see triple digit inflation next year.

    Sep 09th, 2014 - 09:50 pm - Link - Report abuse 0
  • Jack Bauer

    CFK will not be pleased to learn that, if Marina Silva wins the October elections, she will start to treat the Argentine the way it deserves to more Mr. Nice Guy, letting them break the Mercosur rules and get away with. She has stated that if she gets in, things will change.....the same goes for the Madman in VZ and the rotten Uevo in Boliland. They'll have to look for new friends elsewhere.

    Sep 09th, 2014 - 11:00 pm - Link - Report abuse 0
  • ilsen

    Jack B
    will she enforce the repayment of the US$4.5 Billion that Venezuela owes Brazilian companies? I hope so. Bring down the Boli-bullshitters.

    Sep 10th, 2014 - 12:38 am - Link - Report abuse 0
  • nigelpwsmith

    War between China and the US?

    Well close, but not quite. An indication of what the Chinese are up to in Argentina can be obtained by reviewing their actions in the East and South China Seas.

    Apart of the dispute with the Japanese and the Taiwanese over the Senkaku/Diaoyu Islands which is obviously about territory seized before WW2 (and consequent loss of face)

    there is also the Island factories that China are building in the Pinnacle Islands to try and seize territory currently owned (according to UNCLOS) by the Philippines.

    The objective is not merely sea territory, but what lies beneath. The oil and minerals.

    China is very possessively fending off any attempts to deny them the rights to the seas, even though, in some cases, they lie in International Waters. Look at this BBC article about it.

    What China is doing in Argentina is laying claim to not only the Dead Cow (and I'm not referring to the soon to be deceased president of Argentina!), but also all the off shore assets they can find as well. They know that the Falkland Islanders are sitting on a massive amount of oil, equivalent to that in the North Sea (if not more) and the Chinese are speculating (they love to gamble) that there is far more the greedy Argies have not found. So they lend Argentina a few Yuan and in return, they can claim the biggest reserves in South America, not owned by the Venezuelans.

    There will be 'confrontations' with the United States Navy. There has already been a few close calls. It's highly likely that there will be gunfire sooner or later. We all recall that they attacked the Vietnamese in 1988 and Hanoi has never forgiven Beijing for that one.

    One day, Beijing will play the bully and throw their weight around too much and they will be on the receiving end of a lesson they will not forget in a hurry.

    Sep 10th, 2014 - 12:38 am - Link - Report abuse 0
  • CabezaDura2

    China has estimated oil and gas shale reserves even bigger than the ones of Argentina at 2 Km in depth. Vaca Muerta is at 3 Km in depth.

    Even if your conspiracy theory were true (you sound like an Argentine yourself) China has yet to reach a point in which their naval power overturns the maritime balance in the East Pacific. It doesnt make sence at all, but think that if China was to invade Argentina take over Vaca Muerta, invest billions to extract the oil and gas have a permanent PLA killing Argies and controling the area and then having to ship the oil and gas by the South Atlantic and to the other side of the Pacific. All waters controlled by the US Navy and its allies.

    I think that the invesment in infrastructure and alliances in Central Asia and Myanmar, Pakistan that China has built say far more about where the Chinese are going in terms of energy sources.

    Sep 10th, 2014 - 01:17 am - Link - Report abuse 0
  • yankeeboy

    I think China has the same problem as Argentina, no water where they need to Frack.

    There's lots and lots of o/g underground but getting it profitability is a different story.

    Sep 10th, 2014 - 01:39 am - Link - Report abuse 0
  • CabezaDura2

    China has the problem that the reserves are over settled land.

    Sooner or later the technology to frack with salty water will be available.

    But just look at the gas pipelines they chinese have built to Turkmenistan via Uzbek and Kazhajstan... There is another one being built by Kyrgyztan to avoid the russian infuence in Khazajstan. Russia is going to central Asia, and Russia to avoid as much as they can the Americans and Indians

    Sep 10th, 2014 - 01:55 am - Link - Report abuse 0
  • Jack Bauer

    @36 Ilsen
    Presume you are referring to the cash that VZ owes the international airlines...
    If so, the US$ 4 B is owed to several airlines.....and after end of May, have heard no more news on this subject.
    On the other hand, I know that Brazil loaned VZ quite a large amount - US$ 1 B if not mistaken, to finance the contruction of the Caracas underground - s, I can't guarantee it, but my feeling is that she would demand that the payment schedule be respected. Brazil is in no situation to forgive the foreign debt owed by several underdeveloped countries, as Lulla did for a few of his dictator buddies in Africa...But, first things first, let's get rid of Dumbo-ass Dilma before anything else.

    Sep 10th, 2014 - 05:24 pm - Link - Report abuse 0
  • ilsen

    Jack, thanks for that. I was talking about the billions owing to Brazilian companies. It is similar to the airline situation I understand.

    Sep 11th, 2014 - 10:21 am - Link - Report abuse 0
  • Jack Bauer

    @42 Ilsen,
    You're right. The VZ government owes millions to private Brazilian exporters. One case in which I was only marginally involved, is that of the beef exporters. Besides the structural deficiencies at Puerto Cabello (and mostl other VZ seaports), hundreds of 40' reefer containers were routinely deviated to and remained at Caucedo (Rep Dom), sometimes for months, until PTC was able to receive them. Although their shipment from Brazil had been pre-authorized by the VZ government, this rigmarole has carried on for years, and probably still does. Chavez would always allow the beef into VZ near to, or just before some public event important to him (announcement of new measures - usually targeted against the “unfair” private sector, elections etc), so that he could distribute the specially final 'consumer-sized' packages of beef to the poor, who would then hail him as their saviour. And the exporters have accumulated millions of dollars in unpaid bills by VZ, and are not even sure when - and if - they'll receive it,

    Sep 15th, 2014 - 04:45 pm - Link - Report abuse 0

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