Thursday, 19 February 2009

Argentina Reopens GL Swap, to Issue Five-Year Debt in Pesos

Argentina reopened the swap for about $3 billion of so-called guaranteed loans (préstamos garantizados.) The move should help Cristina Fernández's government to reduce the very heavy debt refiancing schedule for this year -- estimated at about $18 billion. Terms include a 2 percent haircut on the value of the loans held by investors and the issuance of a new five-year bullet note linked to the Badlar rate, in pesos obviously. Net savings are estimated at $2 billion, with $1.6 billion coming this year and the rest for 2010, according to a Barclays Capital report.

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