Goldman Sachs to extend Argentina billion-dollar credit

The Argentine government has reportedly reached an agreement to receive a credit for 1bn dollars from US banking giant Goldman Sachs, in order to reinforce the international currency reserves held in the nation's Central Bank.

The operation, which would be paid back with an annual interest of 6.5 percent over two years, will be officialised in the coming days once other technicalities are ironed out in the deal, according to a report published today in Página 12.

Negotiations with Goldman Sachs are being carried out concurrently with other talks held by the Economic Ministry and Central Bank chief Juan Carlos Fábrega, with investment banks and international commerce entities.

Talks have centred on the Central Bank's credit, but other issues go further to tackle a key subject; the construction of a financial apparatus which would resolve the lawsuit against Argentina by the so-called 'vulture funds'.

The most viable alternative would be for Goldman to contribute its own capital in order to buy unpaid bonds from the holdouts, which they would then give to the government in exchange for new titles in an exchange.

The current credit being discussed, meanwhile, would send a strong message in stemming the flow of dollars out of international reserves, which have fallen heavily since the start of 2014 albeit with a slowed exit since March.

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