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Posted by
BradyNet
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Friday, October 24, '03
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DOW JONES NEWSWIRES
By Michael Casey
Of DOW JONES NEWSWIRES
BUENOS AIRES -- Banco Galicia S.A., Argentina's biggest private bank, will announce fresh details on a much-anticipated debt restructuring arrangement with its creditors in the next week or two, sources at the bank said Thursday.
Bank officials said they couldn't comment, however, on the contents of an article published Thursday in which various alternative bond swap proposals were outlined for the restructuring of some $1.5 billion in defaulted debt. The article, in El Cronista, was based on reported consultations that the bank has had with banks and bondholders.
Citing "legal considerations," one official said "the only thing I can say about that is that the process of debt renegotiation for the bank is going well."
"Most certainly, next week, or the following week - the first week of November - there will be some new developments announced about some of the advances. That is, when the creditors and steering committees are able to give us an announcement."
The shares of Banco Galicia's holding company, Grupo Financiero Galicia S.A. (GGAL ) have rallied sharply in recent days amid anticipation that the troubled financial group has made progress on its talks with creditors. It shares are now up 9.6% from the beginning of last week, closing at ARS1.710 ($1=ARS2.845) Thursday.
The El Cronista article said that three options had been discussed.
One option, the report said, would be for a complete swap of debt for new, 10-year dollar-denominated bonds in which the face value would be preserved - but which would carry reduced coupons to be partially paid as cash and partially treated as capitalized interest. The rates would rise progressively over time from 2.5%-3.5% up to 6%-8%.
The second option would offer a similar structure but with 25% of the bonds swapped subject to a higher interest rate than the other 75%. The third option would entail a cash payout with a 55% reduction on the bonds' face value, plus a mix of discount bonds, par bonds and shares in the holding company.
In response to the article, Galicia released a report to the Buenos Aires Stock Exchange Thursday in which it reviewed some of the publicly announced steps it has taken so far in the restructuring process.
Those include, the statement said, the Sept. 30 approval by creditors of a bond issue program worth $2 billion to facilitate the restructuring, the appointment of Salomon Smith Barney/Citigroup as a financial advisor and the registration of creditors - the debt is distributed among approximately 70 international banks, various multilateral organizations and numerous individual bondholders and other investors. In the statement, the bank reiterated that it had invited creditors to form a committee of creditors and that that committee had appointed Deloitte & Touche as its financial advisor.
"The process of negotiation has still not been concluded, such that the scheme as much as the conditions of refinance are subject to modifications until a definitive accord is reached," the bank said in its statement.
Galicia was one of the banks hit hardest by last year's financial crisis. A massive exit of depositors destabilized its balance sheet and forced it to accumulate outstanding discount loans to the central bank worth around ARS4 billion.
Under a scheme agreed upon earlier this year, the central bank will soon begin a so-called matching program allowing banks such as Galicia to start paying back their discount loans. The repayment process would allow banks to match the payments they receive on government bonds in their portfolios against their commitments to the central bank. However, Galicia's access to that program is contingent on resolving its debt restructuring, a factor that's putting some pressure on the bank to move forward with it.>
thanks
$20bn from the United States
$5bn from Japan
$3bn-$5bn from the World Bank
$1bn from Saudi Arabia
$1bn from Kuwait
$835m from Britain
<$300m from Spain>
$231m from the European Union
$200m from South Korea
<$174m from Italy>
$150m from Canada
$32.6m from Sweden
$5.9m from Belgium
http://www.thelancet.com/journal/jo...
Argentina and Cuba agree on trade of "drugs for dollars"
<Argentina and Cuba have negotiated an elegant, if partial, solution to their respective economic problems, by way of an agreement under which Havana's US$1·9 billion debt to Buenos Aires will be reduced, in return for drugs, vaccines, and access to Cuban health-care services. Argentinian people denied medical services as a result of the near-collapse of the republic's health and social security system--a consequence of a generalised economic crisis--will get free treatment in Cuba. Care up to a value of $50 million over 5 years will be provided to low-income Argentinians. Argentina's chronic shortage of drugs will be eased by consignments from Cuba's highly developed pharmaceutical sector, worth $475 million. Argentinian scientists and medical tutors will be trained in pioneering Cuban treatment for the degenerative eye disease retinitis pigmentosa and in other specialties highly developed in Cuba, such as drug rehabilitation and cosmetic surgery. The benefit to Cuba will be a 75% reduction in bilateral debt to Argentina, which has accumulated over three decades. The three-quarter mark-down is in line with Argentina's own offer to international creditors, in an attempt to negotiate its way out of an economic crisis sparked by a repayment default in December, 2001, and the subsequent, massive devaluation of the Argentinian peso.>
Argy needs Cuba to teach it how to do plastic surgery???? Do they really want to look as ugly as El Barbudo?
Argy, Brazil & Chile are benefitting from the improvement of the terms of trade this reflects not only in reserves, GDP growth but also in Tax Collections.
One caveat do! Guess whos buying!!!
CHINA Im really concerned with this!! The only reason the world didnt go into recession lin 2001 & 2002 is because of India & China.
If China starts to slowdown then we is in big <CACA>
What is there to regreat? ;-))
VSX3 Nov 2003 767 1/2 +3 3/4 7:00AM >
Fox - do you have commodity futures positions on?
just in time for the holidays, utilities across the country are raising the prices they charge for natural gas, cutting further into consumers' budgets……..>
http://online.wsj.com/article/0,,SB...
VSX3 Nov 2003 767 1/2 +3 3/4 7:00AM
<SOYBEAN COMPLEX November soybeans were higher overnight following another strong weekly export sales report released on Thursday. Overnight strength posted a new contract high as November is breaking out above the monthly downtrend line drawn off the 1988-1996 highs crossing near 7.63. Multiple closes above this resistance level would open the door for a possible test of the 75% retracement level of the 1988-1991 decline on the monthly November soybean chart crossing at 8.01 1/4. Closes below initial support marked by the 10-day moving average crossing at 7.34 and then Tuesday's low crossing at 7.22 would signal that a top has been posted. Overnight action sets the stage for a 2 to 4 cent higher opening when the day session opens later this morning.>
Anyone interested in commocities may look up this site:
http://www.ino.com/
Its free but you must register.
<British Gas> the largest importer of LNG into the U.S
Others with capacity in U.S. LNG import terminals include Shell, a division of Royal Dutch Petroleum Co. (RD); Marathon Oil Corp. (MRO); BP PLC (BP); Statoil ASA (STO) and Tractebel Energia SA (TBLE6.BR), ………….. South Korean companies lead the world in building new LNG tankers for ship owners and gas producers, Khawam said. Hyundai Heavy Industries Co. Ltd. (009540.SE) in South Korea is the world's largest LNG shipbuilding company. Other South Korean firms among the world's top builders include Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering Co. (042660.SE)….. >
http://online.wsj.com/article/0,,BT...IMHO we are going to experience this swings sort of often, US bonds may perform well but for the wrong reasons, i.e. economic slowdown, deflation, that China may be entering in a hard landing by mid 2004, etc...
In the very short term the most important thing for Argy, Brazil & Chile is commodity prices.
Look @ the Nov 03 SoyBean futures!!
Ill check the gazeta now, mind you we have an 1 hr. difference now with Sao.
Brazil 27 90.000 90.850 - 0.75 617 606
nota do brasil poderia subir quatro degraus....
< PARIS, France -- A British woman has been found guilty in a Paris court of running an international prostitution ring.
Margaret MacDonald, 44, was jailed for four years and fined 150,000 euros ($177,000). Her lawyer said she would appeal the sentence.
MacDonald ran Europe's biggest high-class call girl service and could have spent six years in jail. At the time of her arrest in a hotel near the Champs Elysees, investigators found the names of 430 prostitutes on her laptop. …………>
http://edition.cnn.com/2003/WORLD/e...
<GM Drops Risque-Named Buick Car in Quebec NEW YORK (AP) - It's all in the name. General Motors Corp. has scrapped plans to replace the Buick Regal with the Buick LaCrosse in Canada because in the French-speaking province of Quebec ``lacrosse'' means to masturbate. Among other things. GM Canada spokesman Stew Low told the La Crosse Tribune in Wisconsin last Friday that in Quebec youth culture the word is a new slang term ``(It) means a couple of things, either to masturbate or 'I just got screwed,' or 'I just got taken''' Low told the newspaper in Saturday's copyright editions. ``People of our age wouldn't even think twice about (the word.)'' >
http://cnn.netscape.cnn.com/news/st...
The Israelis knew that it was an American ship. At the same time of the USS Liberty attack an US NSA surveillance plane was over the area and captured the Israeli radio traffic where a pilot reported that he had seen an American flag.
The captain of the ship even raised an even larger American flag after the Israelis shot down the first.
All congress and NSA inquiries into the "incident" conclude that the Israelis knew whom they were attacking. I suggest to read the book "NSA" by James Bamford.
The most likely theory is that the Israelis attacked the ship because at the same time they were slaughtering hundreds of captured Egyptian soldiers and civilians on the Sinai and didnt want any evidence to survive.
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