ARGENTINA EXPECTS QUICK AGREEMENT WITH BANKS
Argentina expects to reach agreement with
its commercial bank creditors in the near future on a new
financing package including 2.15 billion dlrs in new loans,
Treasury Secretary Mario Brodersohn said.
    Addressing Argentine businessman during the Inter-American
Development Bank (IADB) meeting here, he said the two sides
will meet again next Thursday in New York.
    "We have made significant progress over the last 30 days
and we should have an agreement in a shorter lapse of time than
managed by Mexico, Venezuela or Chile," he said.
    Brodersohn reiterated that Argentina's goal is to reach an
agreement which permits four pct growth this year, following
last year's 5.5 pct and negative growth in 1985.
    He said discussions were still continuing on
debt-capitalization plans and schemes for on-lending, in the
light of certain Argentine concerns.
    The government is anxious that debt that is capitalized
should represent new investment in the country on a dollar
invested per dollar capitalized basis, rather than a simple
transfer of ownership of the debt, he said.
    At the same time, it wants to avoid an expansionary
monetary impact from on-lending schemes, whereby debt
repayments are recycled by banks into new loans.
    Brodersohn said also agreement was close on the proposal
for so-called exit bonds, whereby creditors can sell out their
debt.
    Argentina's 1987 financing needs come to 3.53 billion dlrs,
including the 2.15 billion from banks and a 1.38 billion dlr
IMF loan already agreed. It is projecting a current account
deficit of 2.2 billion dlrs after one of 2.4 billion last year.
    It estimates export earnings will have dropped by 7.1
billion dlrs between 1985-87 as a result of falling commodity
prices.
    Argentina, owing 50 billion dlrs, is Latin America's fourth
biggest debtor.
 Reuter
