The Financial Times 30/6/84 Argentina and banks reach debt agreement BY PETER MONTAGNON, EUROMARKETS CORRESPONDENT ARGENTINA agreed last night reduce its balance of payments York. Its initial maturity of 45 to pay $225m (166m) from its deficit and curb inflation, now days can be extended if Argen- reserves to help meet payments running at 570 per cent. tina reaches an agreement with of overdue interest ahead of As today’s deadline for U.S.' the IMF. , to-day’s key quarterly report­ banks drew near, some of the Advisory committee bankers ing deadline for U.S. banks, Sr 11 banks on the advisory com- noted last night that the cash Bernardo Grinspun, Economy mittee, which is presided over they will receive in interest Minister, announced in Buenos by Citibank, held out against from this package exceeds the Aires. making any further advances to amount they will have to re-lend <T, The agreement was part of a Argentina without an IMF in the form of their $125m package that will bring interest agreement. Lloyds Bank of the advance. payments on the couuntry’s UK, which sits on the commit- Argentina’s willingness to public sector debt current tee. also had to clear its partici- make a ne tpayment of interest through to April 2. The 11 pation in the loan with Downing to its bank creditors follows leading creditor banks which Street. This has become stan- strong pressure from the U.S. have been leading negotiations dard practice for British banks Government, as well as other wih Argentina are to advance dealing with Argentina since Latin . American debtor a further $125m to the govern­ the Falklands. countries, that it should come to ment of President Raul As late as yesterday after- terms with the IMF. However, Alfonsin. noon theer were still doubts meetings this week between Sr The package will have the over whether the banks’ pack- Grinspun and Mr Jacques de immediate effect of preventing age could go ahead and, in New Larosiere, IMF managing U.S. banks from having to de­ York Citibank declined immedi- director, produced little, clare Argentine loans as non- ate confirmation of Sr Grin- Mr de Larosibre told Mr performaing in their second spun’s statement that agreement William Rhodes, chairman of quarter results. This would had been reached. the advisory committee, by have sharply _ dented their Senior bankers said, how­ telephone on Thursday night It also underlines the deter­ ever, they had become more that progress had been made in mination of both bank credi­ optimistic about an eventual defining the issues at stake but tors and Argentina to keep the settlement of Argentina’s it was too early to speculate on door open for further debt $43.6bn debt problem after when a final agreement might negotiations despite the failure President Alfonsin’s speech to of President Alfonsin’s Radical the nation on Wednesday night be reached. Party Government to agree an in which he spoke of the need As part of yesterday’s pack- austerity programme with the for tough economic measures, age all bank creditors are to be International Monetary Fund. Some bankers regard this as a asked to defer until mid­ An outline of last night’s sign of rapprochement with the September the repayment date o package to reduce interest pay­ IMF. of a $750m loan instalment ment arrears to less than 90 Like the $100m advance made which fell due on June 15. The days has been on the table bv the advisory committee in advisory committee banks are since early June but its fate March, the new loan from the also to extend the maturity of hung in the balance following banks will be secured against the SlOOm advance made in Argentina’s open rift with the Argentine deposits at the March to help Argentina meet IMF on the terms of a plan to Federal Reserve Bank of New interest payments. Daily Mail 30th June 1984 Settled BUENOS AIRES: An agreement oil the pay­ ment to U.S. banks of £330 million owed in Interest on Argentina's £31 billion foreign debt was announced here. McMillan-Scoti Assocuitrs Public Affairs i m 11 W lull-lull I.. inilmi >V\ I \ JK/ I-'-,’ *.• ■ . J. <\ -1.'.; i f L T-« i r— The Times 29/6/84 observed: “We arrest a man or Falklands fishing woman who steals the goose from From Mr Simon Lyster off the common, but we let the Sir, In his letter,(June 18) on the person loose who steals the common Falklands fishing issue Dr Godman from under the goose.” At enormous missed the main point. It would be cost the Falklands goose is now safe counter-productive to encourage any from the Argentinians, but we are more fishermen in Falklands waters, allowing the Poles, Russians, East whether Argentinian or otherwise, Germans, Japanese, Spanish and without first controlling the amount Taiwanese to strip the common with of fish they can catch. impunity. Falklands fish slocks are (or were Unless the Government takes until recently) extremely rich. But rapid action to impose controls, because the British Government has even if only as an interim measure failed to declare a 200-mile fishing until a broader agreement with zone around the islands, trawlers Argentina can be worked out, talk of from any country (except Argentina) Argentine fishermen, British fisher­ are free to take as much fish as they men or any other fishermen is can catch without any restriction irrelevant because there simply will and without paying a penny in not be viable numbers of fish to licence fees. catch. As a result, Polish, Russian, East Yours faithfully, German, Japanese, Spanish and SIMON LYSTER, Hon Secretary, Taiwanese vessels have been pour­ Falkland Islands Foundation, ing into Falklands waters in the last c/o World Wildlife Fund - UK, 18 months and are fishing as hard as Panda House, they can while the bonanza lasts. 11-13 Ockford Road, In 1680 an anonymous writer Godaiming, Surrey. o The Observer 1/7/84 BUENOS AIRES The Times 29/6/84 FaMand'progress’ Alfoosle forced to call THREE British Parliamen- Party’s chief spokesman on tarians who finished a six-day foreign affairs in the Lords, Mr visit to Argentina yesterday Foulkes held over 60 meetings for extra sacrifices believe they have found suf- with Argentine politicians of ficient common ground with both the ruling and opposition jrTJirzKsi; ir/lriF?t?£ Argentine officials to pave the partjeSj trade unionists, busi- way for the eventual resump­ nessmen and bankers, in the tion of negotiations over the arsisr trsss — * *** an implicit first detailed dialogue between enough,_ has called on his ^president Fonsin uid not future of the Falkland Islands. members of the British and country s citizens f°r greater Government was They are not dismayed by a Argentine political establish­ economic sacrifice. While he in t0 thc 1MF, but said last minute demonstration ments since the Falklands war. anounccd few specific mea- , ® sacrifices were against them by extreme right- sures, the imploring tone of his tQ restructUre the wing nationalists. Jimmy Burns says consider- nationally televised speec i country’s chaotic economy, appeared to pave the way for ^ had an inflation rate of * I said when I left the UK that able progress appears to have coming to Argentina been made at a more private what hl? rovprn 568 per cent over the past year, we were searching for clues, suggestions, level with intermediaries acting hints, and ideas to take back on behalf of President Raul a with us. We feel we have got Alfonsin and Foreign Minister them. Dante Caputo, both of whom Along with Conservative MP seem to have viewed the British help refinance its $45,000m an> thing. Cyril Townsend and Lord visit as an opportunity to bring (£33,000m) foreign debt. Kennet, the Social Democratic about a thaw in relations. President Alfonsin said a new government economic and social policy would soon be detailed by Senor Bernardo Grinspun, the Economics Min­ ister. Senor Grinspun reported some progress in negotiations in the United States with the International Monetary Fund over the proposed austerity plans. An immediate deadline on Argentina’s debt looms this weekend. Western Bankers here say a committee for the country’s 320 creditor banks has refused to help Argentina president Alfonsin: compro- pay off some $450m in mise on austerity measures. overdrafts Interests that threat- McMillan-Scott Associates Public Affairs •II Whitehall Li union SW IA 2 If/. Irl.-, ! i J Daily Telegraph 29/6/84 FaUdanclers press for fiskiiiffa zone l By PATRICK WATTS in Port Stanley JJINTS that Britain does not intend to introduce a 200 - mile exclusive fisheries zone around the Falklands have annoyed elected members of the Daily Telegraph 29/6/84 islands’ legislative council. Councillors asked for the VARLEY POST o zone last year claiming that By Our Business licenses offered to foreign fish- I Correspondent jng fleets, could make £20 mil­ lion a year for the Falklands. | Mr Eric Varley, 52, former Labour Cabinet Minister, is to .But Sir Rex Hunt, Civil Com­ take over as chairman and missioner, has told the legisla­ chief executive of the Coalite tive council “ not to depend group, the fuel company which upon a windfall from the licens­ is also the biggest landowner ing of trawlers in an exclusive in the Falkland Islands, in Sep­ fisheries zone.” tember. He is presently deputy Mr JohnT Cheek, who repre­ chairman. sents West Stanley, said that City Report—P23 the news was “ disappointing to me, the rest of the councillors and to most people in the Falklands.