28 jun: Når lav risiko giver højt afkast
17 jul: Test
06-07-2012 00:11:00

UPDATE: New Argentina Bank Rules to Spur ARS15 Billion in Loans

Relateret indhold

(Adds that banks have until Dec. 31 to make the loans, in the second paragraph.)

By Taos Turner

BUENOS AIRES--Argentine banks will offer at least 15 billion Argentine pesos ($3.3 billion) in investment-credit lines, thanks to new government rules that force them to do so, the Central Bank of Argentina said Thursday.

The rules, which compel banks holding at least 1% of the country's total deposits to lend 5% of their own deposits at subsidized rates, aim to boost business investment at a time of weakening economic growth. The banks will have until December 31 to make the loans.

Central Bank President Mercedes Marco del Pont said the best way to create jobs and stimulate the economy is to set aside bank deposits for this type of lending.

The new rules will affect the Argentine subsidiaries of several large foreign banks, including Spain's Banco Santander SA (SAN, SAN.MC) and Banco Bilbao Vizcaya Argentaria SA (BBVA, BBVA.MC), HSBC Holdings PLC (HBC, HSBA.LN, 0005.HK), and Citigroup Inc. (C).

The interest rate on the loans will be set at Badlar plus four percentage points. Badlar is the average interest rate on fixed-term deposits above one million pesos ($221,238). Based on data from June, that would put the annual rate for the new loans at around 15%.

That is far below the annual rate of inflation, which most economists have said likely totals around 25%. In recent years, banks have been reluctant to lend below this level because of its inherent risk, and expectations for future inflation have long been around 25% or 30%.

At least half of the loans must go to small businesses.

"This is very important as a symbolic gesture," said Nicolas Dujovne, head of the consultancy Nicolas Dujovne y Asociados. "Until now it had been taboo to touch the banking sector because of concern about the consequences of doing so. This puts us in uncharted waters."

Mr. Dujovne, who spent more than a decade as the chief economist at Banco Galicia, one of the country's biggest banks, said the government may now be tempted to further tap the banking system.

"This won't cut that much into banks' earnings," he said. "The most important thing is that it sets us on a new path with banks and the potential expropriation of earnings and discretional use of bank capital."

Banco Galicia is part of Grupo Financiero Galicia SA (GGAL.BA, GGAL).

Argentine President Cristina Kirchner outlined the rules late Wednesday, saying private-sector banks have made a lot of money in Argentina and it is time for them to do more to spur growth.

"This will put some pressure on the banks' profitability," Moody's Investors Service analyst Valeria Azconegui said Thursday.

Ms. Azconegui said bank lending rose at a quick pace in 2010 and 2011 but the growth rate has been slowing this year.

Write to Taos Turner at taos.turner@dowjones.com.

(END) Dow Jones Newswires

July 05, 2012 18:11 ET (22:11 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Nordea/Nykredit: Mindre gevinst ved flytningen betyder ikke meget

16-02-2018 16:17:10
Ændringen i besparelserne ved Nordeas flytning til Finland fra Sverige betyder ikke frygtelig meget.Det vurderer analytiker ved Nykredit Markets Ricky Steen Rasmussen.Forventningerne til besparelserne i forbindelse med flytningen til Finland er blevet justeret til 0,9-1,2 mia. euro fra 1,1-1,3 mia. euro. Det oplyste Nordea i en meddelelse til fondsbørsen fredag eftermiddag.- Jeg ser ikke særlig st..

Nordea venter færre besparelser ved flytning til Finland

16-02-2018 14:18:54
Efter nøje beregninger er Nordea kommet frem til, at den forestående flytning af hovedsædet til Finland fra Sverige giver en mindre økonomisk gevinst end hidtil antaget.Nu venter den skandinaviske storbank, at nettonutidsværdien af de samlede besparelser på afviklingsgebyrer, indskydergarantier og andre midlertidige effekter af flytningen af hovedsædet udgør cirka 0,9-1,2 mia. euro. Tidligere regn..

Aktier/middag: Bred funderet opgang er modreaktion på korrektion

16-02-2018 11:19:57
De ledende danske aktier ligger fredag middag alle i grønt uden deciderede selskabsspecifikke faktorer som forklaring på de enkelte aktiers bevægelser.I toppen ligger Novozymes, Novo Nordisk og DSV.C25-indekset ligger fredag middag med en stigning på 1,9 pct. i 1142,72. Det er tredje dag i træk med løft, og indekset er indtil videre steget fire af de seneste fem handelsdage og små 5 pct. siden sid..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge

Relaterede aktiekurser

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2018  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
18. februar 2018 02:37:58
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20180209.1 - EUROWEB7 - 2018-02-18 02:37:58 - 2018-02-18 02:37:58 - 1 - Website: OKAY