Argentina - Project FinancingArgentina - Project Financing
Since resolving disputes with holdout creditors in April 2016, the Argentine government, provinces, and the private sector have tapped into international capital markets. Foreign portfolio investment helped significantly to finance the government’s operations through early-2018, but that investment rapidly evaporated in April 2018 as part of a worldwide retrenchment from emerging market debt, precipitating a run on the Argentine peso. In September 2018, Argentina negotiated a $57 billion Stand-By Arrangement with the IMF to ensure the government’s access to financing through 2020, provided it made significant cuts to the federal budget deficit and implemented a new, more conservative monetary policy. In the wake of the 2018 recession and newly tight monetary policy, interest rates have skyrocketed, causing investment in the economy to plummet. In spite of improved access to international markets, financing remains one of the main obstacles for project development in Argentina. The Inter-American Development Bank, the World Bank, and the Corporacion Andina de Fomento, in addition to some countries, have provided credit to Argentina. Financing from major developed countries and their national export credits agencies lagged in the past, although Argentina resolved its pending arrears with Paris Club members in May 2015. There are some options available to support trade finance for U.S. exports to Argentina, as detailed below.
In November 2018, the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, signed six letters of interest to advance several projects in support of Argentina’s economic growth. The agreements – which total $813 million in U.S. support – will catalyze hundreds of millions in additional private capital. In all, the over $3 billion worth of projects will support sectors ranging from infrastructure to energy to logistics.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
In November 2018, the Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, signed six letters of interest to advance several projects in support of Argentina’s economic growth. The agreements – which total $813 million in U.S. support – will catalyze hundreds of millions in additional private capital. In all, the over $3 billion worth of projects will support sectors ranging from infrastructure to energy to logistics.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.