Bankers worried

Press, 30 April 1982, Page 6

Bankers worried

NZPA-Reuter Luxemburg Senior European bankers yesterday reported growing strains, in relations between some banks in Britain and other countries over how to share out payments made by Argentina on its foreign loans. Argentina has halted interest payments owed to Britain because of the Falklands Island crisis and the bankers said that some Western banks were resisting demands by London institutions for a share of money received by other members of lending groups. They told Reuter that intensive telephone contacts had been taking place this week between bankers in the world’s main financial centres to decide how to handle the situation. The bankers also expressed growing concern that long-lasting. strains in banking relations sparked by the Falklands crisis could damage international capital markets. They were worried that Argentina’s already shaky economy could deteriorate dramatically if the dispute over the islands is not resolved quickly, possibly forcing Buenos Aires to seek a new timetable for repayments on a foreign debt estimated at SUS 34 billion.