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Argentina,China : ARGENTINA signs a $7.5 billion loan agreement from CHINA

July 24, 2014

Argentina signed 19 deals to borrow $7.5 billion from China.

Argentine President, Cristina Fernandez and her Chinese counterpart, Xi Jinping, agreed on a loan for $4.7 billion from the China Development Bank for the construction of 2 hydroelectric dams in Patagonia. China Gezhouba Group Corp and Argentina'sElectroingenieria SA won contracts to build the 2 dams, whose combined generating capacity will be 1,740 MW.

Another large deal was concluded to modernize Belgrano Cargas. The countries signed comprehensive strategic partnership agreements. These deals will contribute to Argentina s economic development.

The leaders signed a 3-year agreement for an $11 billion swap operation between their central banks that will let the Latin American country pay for Chinese imports with the Yuan currency.

Argentina and China have a rich record of long and successful cooperation. China is Argentina s second biggest trade partner, after Brazil. The Argentine-Chinese trade totals $14.8 billion.

China is the largest consumer of Argentina s agricultural products and its third biggest investor.

The deals comes when the Latin American country cannot tap global capital markets because of disputes over unpaid debt.

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: TendersInfo (India)

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