Category: Argentina

Argentina’s international reserves hit $28 billion, the level targeted by the central bank in order to cover the government’s planned early debt repayment to the IMF on 3 January. This is the highest level since July 2000 and well above the low point of $8.8 billion seen in August 2002. The central bank has built up reserves of around $8 billion this year via interventions in the foreign exchange market; yesterday it bought $70 million to take the level to just over $28 billion.

Argentina’s largest gas distributor, Metrogas, has again extended its debt swap offer deadline, this time until 11 January, hoping to increase the number of participating debtholders up from around 80%. This is the third time it has reviewed the closing date for the restructuring which offers to swap $437 million of defaulted debt.

Argentina’s 2006 budget has been approved by the Senate by 39 votes to 14 after passing through the lower house already. The budget predicts growth next year of 4% and inflation dropping to 8.6%. Primary budget surplus is estimated to reach 3.26% of GDP.

Venezuela bought another $270.4 million of Argentina’s Boden 2012 issue, after buying $495.7 million less than a week ago, and taking its total for the year to $1.75 million. Venezuela’s latest purchase will help towards Argentina’s dollar reserves which the country needs to build up ahead of its 3 January payment to the IMF of $9.8 billion to cancel its debt.

The Bank of America in Argentina has finalized the sale of BankBoston to a consortium led by South Africa’s Standard Bank and local families Werthein and Sielecki in a 70:20:10 split. The deal is rumored to be worth between $160 million and $180 million.

Argentina’s GDP grew by 9.3% year on year in October, taking economic expansion for the first 10 months of the year to 9.2%. Annual growth of 8.5% is expected this year. The government gave no details of the growth drivers for the month.

Argentina has sold an additional $495.7 million of its US dollar-denominated Boden 2012 to Venezuela. This takes the amount of Argentine sovereign debt bought this year by Venezuela to over $1 billion.

Argentina is reportedly planning to tap the international markets for $8.9 billion, which it will then transfer to the central bank to replace funds used to pay off the sovereign’s debt with the IMF. The bonds are likely have 10 to 15-year maturities although it is not clear if they are to be issued in local currency or US dollars. The government is yet to confirm officially that the issuance will take place.

Argentina’s industrial production rose 8.9% year on year in November, driven by the automotive and non-metallic mining sectors. Month on month industrial output rose 0.4% in November, compared with October.

The Province of Buenos Aires, Argentina’s richest province, said that its $2.9 billion debt swap that closed on Friday has seen 93% take-up by investors. Buenos Aires offered to exchange 30% or $3.1 billion of its total $9 billion defaulted bonds with maturities from 2002 to 2007 for three kinds of bonds, denominated in dollars or euros, with longer maturities carrying lower interest rates. The province’s debt swap was the largest such deal since the Republic of Argentina’s in June this year. The global coordinator of the swap was Citigroup Global Markets Inc.