Loan and Bond Finance in Argentina, 1985-2005

Documento de Trabajo Número 343

50 Pages Posted: 31 Aug 2007

See all articles by Roque Benjamin Fernandez

Roque Benjamin Fernandez

Universidad del CEMA

Celeste González

BBVA Banco Francés

Sergio Pernice

University of CEMA

Jorge M. Streb

Universidad del CEMA

Date Written: April 2007

Abstract

Loan and bond finance during 1985-2005 can be divided into three sub-periods. After the 1982 debt crisis, which mainly involved domestic and foreign bank loans to both the corporate and government sectors, there was practically no credit. This situation of lack of credit persisted until the domestic economy was stabilized in 1991 with the Convertibility Plan, and foreign debt renegotiation was completed in 1993 with the Brady Plan. Loan finance recovered to unprecedented levels since the 1950s, and bond finance became for the first time an important financing vehicle for both the national government and large firms in the corporate sector. Credit came to a sudden stop in 2001, with widespread default on both corporate and government bonds. The 2001 debt crisis was not followed by runaway domestic inflation, and by 2005 Argentina was able to return to foreign capital markets.

Keywords: bank loans, sovereign bonds, provincial bonds, central bank bonds, corporate bonds, pension funds, yields, liquidity

JEL Classification: G1, H6

Suggested Citation

Fernandez, Roque Benjamin and González, Celeste and Pernice, Sergio and Streb, Jorge Miguel, Loan and Bond Finance in Argentina, 1985-2005 (April 2007). Documento de Trabajo Número 343, Available at SSRN: https://ssrn.com/abstract=1008593 or http://dx.doi.org/10.2139/ssrn.1008593

Roque Benjamin Fernandez (Contact Author)

Universidad del CEMA ( email )

1054 Buenos Aires
Argentina

HOME PAGE: http://www.cema.edu.ar/u/rbf/

Celeste González

BBVA Banco Francés ( email )

Buenos Aires
Argentina

Sergio Pernice

University of CEMA ( email )

Department of Finance Cordoba 637 - Piso 3
1054 Buenos Aires
Argentina
4314-1304 (Phone)
4314-1654 (Fax)

Jorge Miguel Streb

Universidad del CEMA ( email )

Av. Cordoba 374
Buenos Aires, CABA
Argentina

HOME PAGE: http://www.ucema.edu.ar/u/jms/

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