Weekly Report - 19 January 2017 (WR-17-02)

ARGENTINA | Still turning to international markets for financing. On 12 January, the Argentine government announced that it had reached an agreement with six international banks to borrow a total of US$6bn, as part of its planned financing for the year. In a press conference, Finance Minister Luis Caputo explained that each of the six banks (Santander, BBVA, Citibank, Deutsche Bank, HSBC, and JP Morgan) have agreed to loan Argentina US$1bn and to take bonds for the same amount maturing in 2024 and offering a 3.8% annual yield as collateral in a repurchase (Repo) agreement. Caputo said that this was an alternative financing mechanism that would allow the government led by President Mauricio Macri to meet all its financial needs this year; and ensure the success of its latest planned bond issue scheduled to take place on 26 January.

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