MercoPress. South Atlantic News Agency
Argentina seals US$ 5 billion deal with international banks at Libor plus 6.5 points
Argentina's central bank said on Friday it had sealed a deal for a US$5 billion, one-year loan from international private banks, bolstering its low foreign reserves as the country heads into talks with creditors suing over unpaid debt. Argentina has been shut out of global credit markets because of its long-running legal dispute in U.S. courts with creditors over debt it defaulted on in 2002. Read full article
Comments
Disclaimer & comment rulesAnother loan. These new lenders should be on the twisted for the Peronists not return to power in the next elections.
Jan 30th, 2016 - 12:55 pm - Link - Report abuse 0US$5 billion isn't enough. Argieland needs at least US$20 billion.
Jan 30th, 2016 - 02:44 pm - Link - Report abuse 0@2
Jan 30th, 2016 - 03:29 pm - Link - Report abuse 0Come on they have to start somewhere.
6.5 points above LIBOR isn't bad considering the activities of TMBOA.
Jan 30th, 2016 - 05:26 pm - Link - Report abuse 0Especially now LIBOR has had a complete overall.
Well done, Macri. This kind of deal was of course inconceivable under the previous regime. It is the first, tenuous building block in place. Obviously it's a drop in the bucket compared with what they need, but it provides desperately needed liquidity without which there is no way the Macri government will be able to re-start the economy. And it shows important flexibility of thinking on the part of the banks involved, and should send a message to the hard core hedge fund creditors that full and immediate payout is not on the cards. In this case Argentina is a somewhat wounded goose from which in due course if fed and properly cared for golden eggs can be expected. Unrealistic demands will kill it and then the creditors will get nothing.
Jan 30th, 2016 - 06:36 pm - Link - Report abuse 05. rottingroadkill is done for.
Jan 30th, 2016 - 07:59 pm - Link - Report abuse 0Commodities have little value.
Manufacturing has only modest value.
Research and intellectual property drive the creation of wealth.
rottingroadkill has neither.
At this point the Reserves are made up of only short term loans and swaps (same thing)
Jan 30th, 2016 - 08:20 pm - Link - Report abuse 0If it wasn't a country it would be considered bankrupt.
@ 7
Jan 31st, 2016 - 12:03 am - Link - Report abuse 0and pagarés (IOUs) dated year 2007 to 2015, and signed “the government”.
Hey YB, Pot calling the kettle black: http://www.usdebtclock.org/
Jan 31st, 2016 - 11:30 pm - Link - Report abuse 0When are you guys going to start paying it down?
Maybe next Prez
Feb 01st, 2016 - 12:23 am - Link - Report abuse 0Maybe never
Maybe we'll just stop paying all the debt held by foreigners like Arg did.
stupid comparison
@4 and @7
Feb 01st, 2016 - 06:32 pm - Link - Report abuse 0If you compare the country reserves and net them to the monetary base the country is bankrupt. Due to the devaluation of the argentine peso the figure (reserves/monetary base) is a little bit better than during CFK years thought.
It is not a bad deal at all, but take into account that the risk country of Argentina is, now, around 450 points while the average of the LATAM continent is 650 points. SO for the first time in years the country seems to be more secure than the rest of the continent....
Although it's taking more than expected, these are the first baby steps towards bringing the country into deep indebtedness.
Feb 03rd, 2016 - 02:32 am - Link - Report abuse 0A growing debt will combine with public sector layoffs--18,000--and 10,000 from the private sector for now--with the opening of imports--reduced public investment--reduced wage increases--to achieve the current government plans to create a total 450,000 unemployed.
This, of course, is a major goal of a government of CEOs, working as CEOs for the private enterprise, anxious to have 15 per cent unemployment that will pull wages down.
This rabid revenge against the increased participation of the working class on the national income explains the permanent pendulum in Argentine politics, between governments with social orientation and those wanting to keep the old status quo.
The Argentine wealthy class never understood what Peron told them: that to keep their position they had to resign some wealth, to prevent social revolution from happening.
They never accepted to give anything: they wanted all. That is, in a nutshell, what's happening, for the first time in democracy, with the new government.
@12
Feb 03rd, 2016 - 12:18 pm - Link - Report abuse 0Peron had never mentioned that.
The private banks that were part of this loan are the very same that got a “forex exchange insurance” issuied for the former CEO of the Argentine Central Bank, Mr. E. Vanoli. While private insurances started at AR$ 15 per dollar the BCRA guaranteed a AR$ 10 per dollar. Vanoli made arragement for almost U$D 18.000 million dolar...What a way of impoverish the copuntry !!!
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