Argentina asks for 14 years—and new loans

Press, 23 October 1984, Page 37

Argentina asks for 14 years—and new loans

NZPA-AFP New York Argentina has asked international banks to restructure its debts over 14 years, and to make available 5U55.45 billion (SNZIO.9 billion) in new loans, banking sources said in New York at the week-end. The Argentine Government has begun negotiations along the lines of agreements signed by Mexico and Venezuela with commercial banks envisaging debt restructuring. The Argentine Government has begun talks with private creditor banks to otsjin new payment terms

on its external debt estimated at ?45 billion (?NZ9O billion). A mission, led by the president of Argentinas Central Bank, Enrique Garcia Vasquez, will resume talks next week with the committee of New York bankers representing 320 creditor banks. The $5.45 billion in extra loans sought by Argentina represents the difference between interest due and the country’s net external reserves, a New York banker who wanted to remain anonymous, explained. But he estimated that the private banks agree

to extend only ?US3 billion to ?5 billion in new loans in 1985. In September, after months of tough negotiations, Argentina signed an agreement with the International Monetary Fund (1.M.F.), releasing an I.M.F. credit of $1.43 billion (SNZ2.B6 billion). Private banks regarded this as a pre-condition of talks to restructure Argentina’s debts. Debt payment arrears have caused several leading United States banks to classify a large part of debts owed by Argentina as being doubtful.