BUENOS AIRES, March 30 (Reuters) - Argentina is closing in
on a deal to receive around $1 billion in loans from investment
bank Goldman Sachs and is in talks with other
international banks about similar deals, local newspaper
Pagina/12 reported on Sunday.
The paper, which has close ties with the government of
President Cristina Fernandez, said the two-year loan would be
announced in the next few days and carry an annual interest rate
of 6.5 percent.
It would be the first time in more than a decade the country
has received a substantial loan from international creditors and
comes as the government seeks cash to avoid a further
devaluation of the peso.
The Economy Ministry did not provide immediate comment on
the report.
The government wants the new funds to boost its depleted
foreign exchange reserves, the paper said, citing an unnamed
government source. The reserves will see a further improvement
in April with the export of the country's grain harvest.
Dollars have been scarce in Argentina due to capital flight,
weak exports, and low competitiveness because of high inflation.
The country has also been shut out of international capital
markets since a massive 2002 default.
The government also hoped securing the Goldman Sachs loan
would demonstrate that its strategy of thawing relations with
international creditors was starting to take effect, said the
paper.
Argentina has offered to repay a debt of around $9.5 billion
to the Paris Club of creditor nations stemming from the 2002
default.
The club had accepted Argentina's initial proposal to pay
back the funds without recourse to the International Monetary
Fund and to request credit lines from the countries it owed
money to, Pagina/12 said in a separate report on Sunday.
Talks were continuing over the repayment terms, it added.
(Reporting by Maximiliano Rizzi; Writing by Rosalba O'Brien;
Editing by Sophie Hares)
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