Daily Management Review

Argentina will receive $ 6 billion from foreign banks


01/13/2017


Argentinian Government agreed with a group of six foreign banks on loans for total amount of $ 6 billion for a period of 18 months, said the country’s Finance Minister Luis Caputo.



The transaction, which substantially reduces the country’s need to sell bonds this year, will be closed shortly before Louis Caputo and other officials will set on an international tour and will promote issue of bonds in the amount of up to $ 7 billion on next Thursday.

Under the deal, Argentina will take in $ 1 billion from Santander, BBVA Frances, Citibank, Deutsche Bank, HSBC and J.P. Morgan, paying interest at LIBOR plus 290 basis points.

The deal will help ensure that the government will be able to cover most of financing needs in the first month of 2017, writes The Wall Street Journal. It also saves the Argentine authorities from the need to issue more debt securities next week at a higher rate than they would do otherwise.

"This is very positive news for us, - said Caputo at a press conference. - This reduces our need to borrow $ 6 billion on the market."

Finance Minister of Argentina also pointed out that his team is working to cover funding needs this year. This is about $ 20 billion of new debt, and the official hopes to cushion impact of potentially higher interest rates, which, according to some economists, may rise in connection with election of Donald Trump as US president.

"Nobody knows what will happen - Caputo said -. But our task is to minimize the risk." According to the minister, it helps to "reduce uncertainty, so that people can say that this year will not be difficult."

Argentina plans to sell dollar bonds worth up to $ 5 billion in peso-denominated bonds worth up to $ 2 billion, said Caputo. According to him, the government plans to maintain investor interest in the additional issues of bonds and, probably, will not sell the maximum possible amount of debt in the next week.

Finance Minister also said that the ratio of debt to GDP of Argentina is one of the lowest in Latin America, and it is expected that demand for Argentine bonds will be high.

source: wsj.com






Science & Technology

Just $24 Earned By Hackers From The Huge Cryptojacking Campaign Conducted Last Week

New Molecule That Quickly Fights Cancer Cells Identified By Swedish Scientists

The U.K.’s Health Sector To Integrate Israeli ‘Digital Health’ Technology

Cryptocurrency Mining Malware Infects Government Websites In Multiple Countries All Across The World

New Research Into Space Settlement And Space Habitation Will Be Supported By Seed Grants Launched By UAE

NASA Confirms Mystery Satellite To Be Its IMAGE Satellite

Facebook To Put A Ban On Cryptocurrencies Ads

Study Show An Early Sign For Alzheimer's Is Sleep Disruption

Malicious ads on YouTube were used to mine cryptocurrency with viewers’ CPU

American authorities spoke out against electronic cigarettes iQOS

World Politics

World & Politics

South African President Zuma Finally Resigns, New President To Be Elected Soon

13 countries with the best healthcare system

France is coming closer to Iran

India-Russia Develops Supersonic Missile Which Could Raise Concerns In China

Yet another serious political risk for Europe: Italian elections coming soon

Seven Weeks Time Period , Says Theresa May, For Agreement On Brexit Transition Deal

Germany on the brink of political chaos

Trump Administration Consents To Collaborate With Congress On The Matter Of Democrats’ Memo Release