March 20, 2017

The Minister of Finance, Luis Caputo, announced this Monday, together with the British Minister of Trade, the approval of a credit for 1 billion pounds (1.25 billion dollars) offered by the UK Export Finance for projects of exports to Argentina. This way, any enterprise of the UK that wishes to invest in Argentina will be able to access this flexible credit, one of the biggest four for Latin America (together with Mexico, Peru and Chile) and it has very attractive requirements.

Within this context, Caputo highlighted the importance of the announcement: “This agreement with the UK strengthens our position as a productive investment destination, which will bring us more development opportunities”, and he added: “In addition, with this type of financial agreement, Argentina’s foreign trade is favored and thus more and better jobs can be created”. In addition, Hands highlighted in an official release: “Argentina has huge potential to be a modern vibrant economy, and the United Kingdom has committed itself to support the country by means of a constructive relation in areas such as energy, agriculture and infrastructure”.

Both officials held a meeting this morning at the Ministry of Finance, where they talked about the most relevant issues on the bilateral agenda for 2017. The British Ambassador, Mark Kent, and the Chief of Cabinet of the Ministry, Pablo Quirno, also participated in the meeting.

Greg Hands developed a tough working agenda in his visit to Argentina that included meetings with the Ministers of Production, Transport and Tourism, legislators and businessmen. The principal objective of his visit is to announce measures to promote trade and bilateral investment, finance exports and make progress in air services agreements.

UK Export Finance is the UK’s export credit agency that approves loans, insurance policies or bank guarantees with public resources of the UK to help UK companies access export finance.

British authorities highlighted that bilateral trade relations between Argentina and the UK have growing potential. Only in the third quarter 2016 British exports to Argentina increased an 8% compared to the third quarter 2015. Within the main export products we find: pharmaceutical supplies, precious metals, power generation equipment, precision tools, alcoholic and non-alcoholic beverages and electrical equipment and machinery.

The United Kingdom is one of the main investors in Argentina, with a contribution of more than 2 billion dollars in a direct foreign investment and more than 100 British businesses with representation in Argentina.

The British delegation was also comprised by the British Ambassador, Mark Kent; the Director of Trade and Investment in Argentina, Tim Hanson; the Trade Assistant of the British Embassy, Sonia Aponte Tinao; and the regional representative for Latin America of UK Export Finance (UKEF), Sam Hoexter.

March 14, 2017

The Council of the Andean Development Corporation (CAF, for its acronym in Spanish) approved this Tuesday in Panama the financing for 130 million dollars for the second stage of the Río Colorado – Bahía Blanca Aqueduct Project. The Chief of Cabinet, Pablo Quirno, and the Undersecretary of International Financial Relations, Félix Martín Soto, participated in the CLIX Board of Directors Meeting.

The approved Project will be executed by the Province of Buenos Aires and the CAF will be financing the 80%. The local contribution will be of 32.22 million dollars, amounting to a total of 162.22 million dollars. In addition, the 15-year loan includes a 54-month grace period.

This infrastructure investment consists in the building of a new system of water provision for the population and industry of Bahía Blanca and nine nearby locations. This way, this second stage completes the first stage of the project which has already been financed by the CAF with 150 million dollars.

Likewise, the comprehensive Project is comprised by a 140-km aqueduct that connects the cities of Pedro Luro and Bahía Blanca. It also includes an intake work and a purification plant in Pedro Luro, four cistern tanks and two pumping stations. According to the data calculated by the Province of Buenos Aires, the agreement will benefit 450 thousand residents of the region and it will provide the necessary infrastructure for sustainable growth in the industrial sector.

In addition, the CAF Board of Directors Meeting held this week in Panama was the last one presided over by Enrique García, Executive President of the organization as from 1991, and he will be replaced by the new elected President, the Peruvian Luis Carranza.

The CAF is a development bank, founded in 1970 and comprised by 19 countries and 13 private banks of the region, that promotes a sustainable growth model through the support of public and private-sector projects in Latin America. Within this framework, the Shareholders Meeting is its governing body, in charge of approving the annual report of the Board of Directors, the financial statements properly audited, and determining the allocation of the profits earned.

The National Government has obtained the SEC’s authorization to improve the access conditions to Argentine bonds by U.S. investors, after completing the pertinent information procedures. The SEC is the public entity that regulates the securities market of the United States. This authorization allows Argentina to expand the universe of U.S. investors beyond the qualified institutional investors. The registration before the SEC provides a quality seal of the information standards stipulated by Argentina for its investors at a global level.

Offers begin today, March 13, 2017, and end on April 11, 2017, 5 PM, New York time, with an extension option. In that case, the new deadlines for offers will be duly informed.

Eligible bonds to be replaced are the Global 6.250% maturing in 2019; 6.875% maturing in 2021; 7.500% maturing in 2026; 7.625% maturing in 2046; 6.625% maturing in 2028; 7.125% maturing in 2036; 5.625% maturing in 2022; and 6.875% maturing in 2027.

The Minister of Finance, Luis Caputo, opened today the 5th edition of the Argentine Economic Congress, within the framework of the Argentine Exhibition on Economy, Finance and Investment, 2017 EXPO EFI, carried out today and tomorrow at the Hilton Hotel in the City of Buenos Aires.
Before investors and businessmen, the Finance Minister gave a speech entitled Opportunities and Challenges of a New Cycle and he said that: “it is inevitable to analyze where the country was a year ago” and he recalled the highlights of the agreement entered into with holdouts in the beginning of 2016.

“Thanks to that, today we are financing at the lowest nominal rates of our history”, Caputo highlighted. Likewise, he said that “if the dispute hadn’t been solved during the first quarter of the year, it would have been very hard to implement the historical restoration for retirees, and if we hadn’t eliminated the capital controls and the deductions, we wouldn’t have had a record wheat harvest”.

Within that framework, Caputo said that the objective of his team is “to develop the necessary financial conditions in order to motivate growth and credit”, and he added: “If we want a sustainable and balanced growth, we have to enable the productive sector and SMEs to have access to credit at reasonable rates”.

Mr. Minister highlighted the work done by his Ministry to coordinate the financial policies of the public bank and to strengthen the local capital market. “We are going to boost credit at better rates and longer terms, and it is not a prediction, we are already doing it”, the Finance Minister said and he added: “We are working together with Minister Frigerio to grant loans for housing, through Banco Nación, of up to 30 billion pesos, with up to 30-year terms, always having competitive rates as a reference”.

In addition, Caputo said that “currently we have a very small capital market compared to Latin-American countries. Our objective is to increase domestic savings, and in particular for SMEs that are the source of employment”. He also highlighted the importance of “encouraging people so they can start thinking on medium and long-term savings” and he emphasized “the creation of the new closed investment funds that will allow investment in infrastructure, real estate development, and renewable energy”.

Finally, Caputo said: “We know the path is long, but we also know we are in the right path. We are working so that every day we can be closer to the country we have all dreamt of”.
2017 EXPO EFI has more than 170 speakers in 85 conferences, as well as 36 workshops led by experts and directors of different companies and financial institutions that will give their points of view on the economic and financial context. Organizers estimate that more than 10,000 people will participate of the event this year.