Category: Argentina

Electricité de France (EDF) sold 65 percent of its stake in Argentine electricity distributor Edenor to the investment fund Dolphin, headed by Marcelo Mindlin, for $100 million. EDF will keep 25 percent of Edenor and 10 percent will remain in the hands of employees. The deal must still be approved by government regulators.

in Buenos Aires, July 27-28 2005 for LatinFinance’s Cumbre Financiera Argentina. Apply for an invitation today for this high-level, invitation-only summit created to advance discussion and debate on the imminent recovery in the Argentine private sector and challenges to international investment.

Argentina asked to start negotiations next month with the International Monetary Fund for a new loan accord, a year after a $13.3 billion lending program was put on hold. The country owes the IMF $11.7 billion, making it the Fund’s third-biggest debtor after Brazil and Turkey. Posturing has already begun, with Argentine officials publicly rejecting IMF demands to run large primary budget surpluses. Argentina needs a new loan accord to help boost central bank reserves and extend the country’s economic recovery; its economy has expanded more than 8 percent in each of the past two years, after contracting 11 percent in 2002.

in Buenos Aires, July 27-28 2005 for LatinFinance’s Cumbre Financiera Argentina. Apply for an invitation today for this high-level, invitation-only summit created to advance discussion and debate on the imminent recovery in the Argentine private sector and challenges to international investment.

Moody’s raised its credit rating for Argentina to B3 from Caa1. The ceiling for foreign-currency bank deposits rose to Caa1 from Caa2. Moody’s said it upgraded Argentina to take account of “debt relief following May’s bond exchange that concluded a protracted and confrontational debt restructuring process.”

Argentina’s construction industry grew 13.2% in May compared with same period last year, according to seasonally adjusted data from government statistics agency Indec. Construction activity grew 6.3% in April. The construction industry’s recovery has helped reduce unemployment following the 2001-2002 economic crisis. A 41.8% increase in construction permits this year indicates that construction should remain robust this year, helping sustain strong economic growth.

in Buenos Aires, July 27-28 2005 for LatinFinance’s Cumbre Financiera Argentina. Apply for an invitation today for this high-level, invitation-only summit created to advance discussion and debate on the imminent recovery in the Argentine private sector and challenges to international investment.

Argentina faces a new $20 million claim with the International Centre for Settlement of Investment Disputes (ICSID), this one with Asset Recovery Trust, a company based in Argentina but financed by US and German investors. Asset Recovery Trust accuses Banco of Mendoza of illegally canceling a contract in 2003 and expropriating funds. Argentina faces 35 other claims filed with the ICSID, all of them related to government action in 2002 as the country suffered an economic meltdown.

The Spanish-Argentine oil and gas company Repsol YPF will halt new investments in Bolivia until general elections, expected in December, are held. Bolivia’s new president, Eduardo Rodriguez, has been running a caretaker government since ex-president Carlos Mesa resigned earlier this month. Repsol officials say the company will reevaluate investment opportunities as the presidential campaign heats up

Argentina’s GDP expanded a robust 9.8 percent year-on-year in April, beating the central bank’s projection of 8.9 percent. The economy grew 9.0 percent in 2004. Government officials are hoping to secure a new loan agreement with the IMF but are hesitant to implement new economic reforms demanded by the Fund. IMF Managing Director Rodrigo Rato says Argentina must trim its budget and boost savings.