Category: Argentina

Argentina’s consumer prices rose 1.2% in November, above the average forecast by analysts. Inflation for the year, as at November, stood at 11.1%, overshooting government targets. Annual inflation to November was 12%, the highest rate in 28 months. The government has, however, managed to secure an agreement by food retailers to drop the price of 250 basis products by 15% in its efforts to contain inflation.

Celular telecoms operator Personal, owned by Telecom Argentina, has issued three bond series: two peso-denominated bonds issues worth 500 million pesos (US$172 million) and one dollar-denominated issue worth $300 million. This is the company’s first bond issuance since it carried out its restructuring program, the largest in local corporate history. In October, Personal’s shareholders approved a global bond issuance program worth up to $500 million.

HSBC Argentina is planning to issue 177,228,000 new shares to raise $60 million thereby increasing the bank’s current capital stock from $379 million. The shares will consist of 85,533,941 class A shares worth one vote each and 90,694,059 class B shares worth five votes each.

The departure of Economy Minister Roberto Lavagna from the helm of Argentina’s economic management has left markets jittery as they wait to see whether the government will pursue expansionary policies that may spark rising inflation. Lavagna, who had an excellent relationship with the financial markets, was seen as key to keeping the country’s inflation in check. He served as economy minister for the past three years, overseeing the country’s debt restructuring programme. Argentina’s annual inflation rose to 10.7% in October, the highest rate so far this year.

Argentine President Néstor Kirchner yesterday, Monday, replaced Economy Minister Roberto Lavagna following disagreements between the two with regard to inflation. Felica Miceli, currently president of state-owned Banco de la Nación, the country’s largest bank, has been appointed new economy minister and becomes the first woman to hold that post. An economist, she had previously served on the board of the central bank.

Macro Bansud, one of Argentina’s highest-growth private banks, has finalized the purchase of 75% of Banco de Tucumán from local Banco Comafi for $17.3 million. This is the second bank Macro Bansud has bought in the north-western province of Tucumán; a few weeks ago it took over Banco Empresario de Tucumán Cooperativo Limitado, which had suspended trading, paying $10 million.

The Argentine banking sector announced profits of $95 million in September, the highest monthly earnings so far this year. The figure for September represents 1.7% return on assets (ROA). Profits for the first nine months of the year stand at $400 million and ROA at 0.8%.

Venezuela is set to buy $1.2 billion of Argentine debt by the end of 2006 and will buy $300 million before year end. Venezuela already holds $950 million of Argentine paper. It last bought Argentina’s debt at the end of October when it purchased $300 million Boden 2015.

HSBC has outbid rivals to buy the Argentine operations of Italian bank Banca Nazionale del Lavoro (BNL). The UK bank offered $140 million, beating off a joint bid by local banks Comafi and Galicia. The acquisition will make HSBC the sixth largest bank in Argentina in terms of assets.

Argentina’s largest gas distributor, Metrogas, says it has improved its $440 million debt swap offer. It follows two years of failed negotiations with creditors. The new offer includes three options: a buyback of $750 in cash for every $1,000 of debt, or a choice of two different swaps of new debt, both due in 2014. The new offer is valid until 12 December.