Doing Business In Argentina

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Most Argentine banks maintain correspondent arrangements with U.S. banks. (See Chapter 9: U.S. and Country Contacts, for a list of Argentine banks with branches in the U.S.). Project Financing Return to top Even though the economic crisis in Argentina and default on the country's public debt is almost over, financing options are still nearly nonexistent. External lines of credit continue to be cut off and new money entering the local market is primarily used to finance Argentine export transactions. Local banks have stressed that the supplierimporter relationship is key and that the vast majority of financing options have been reduced to financing offered by the foreign supplier. Nevertheless, there may be some options available to support trade finance for U.S. exports to Argentina, as detailed below. The U.S. Export-Import Bank (Ex-Im) Ex-Im Bank is open for short and medium-term financing for U.S. exports only to private sector clients in Argentina. Long-term (15 years) financing is available for environmental projects on a case-by-case basis. Bank officials express optimism about Argentina and will continue to monitor the marketplace, in order to consider future provisions of export financing for U.S. goods and services. Ex-Im Bank will consider structured financing arrangements such as some project finance, asset-based aircraft leases, and other financing arrangements that offer a reasonable assurance of repayment, including reliable access to adequate foreign exchange. In addition, coverage under the Working Capital Guarantee Program may be available for a transaction that is supported by an irrevocable Letter of Credit issued by a bank and/or due from a buyer located in a country where Ex-Im Bank is open without restrictions for short-term transactions. There are many ways to contact Ex-Im. Visit the Ex-Im Internet site at www.exim.gov for 24-hour access to Ex-Im and its programs, or call their toll free telephone number (800) 565-EXIM. For more information and to get on their mailing list, log on to www.exim.gov to fill out an information form. Ex-Im has five regional offices in New York, NY; Miami, FL; Houston, TX; Chicago, IL; and Long Beach, CA. Small Business Administration The Small Business Administration (SBA) has an Export Working Capital Program to support small and medium-sized exporters. For information about this program and to find your local SBA district office, call 1-800-U-ASK-SBA or search the SBA web site at www.sba.gov. The U.S. Export Assistance Centers (USEAC) can also provide information on this program. For a list of USEACs call 1-800-USA-TRADE or go to www.Export.gov. Multilateral Development Bank Operations 3/4/2008
The International Bank for Reconstruction and Development (IBRD or World Bank) provides funding for projects in Argentina. It also provides technical assistance and policy advice. IBRD raises money through the sale of AAA-rated bonds in international capital markets. Loans are made only to governments or to agencies that can obtain a government guarantee. The IBRD also provides partial risk or partial credit guarantees (with a counter-guarantee from their government) to private lenders on development projects. The interest rates are variable, set at half a percentage point above the Bank's average cost of borrowing or LIBOR. Repayment is usually between twelve and fifteen years, including a grace period of three to five years. Opportunities exist for U.S. companies to supply goods and services financed by these loans. The International Finance Corporation (IFC) is an affiliate of the World Bank and also provides project financing for private investment in Argentina. IFC offers long-term loans, equity investments, and other financing services. IFC will generally invest up to 25 percent of the total project cost. Besides project finance, IFC also provides legal and technical assistance to private enterprises. Unlike the IBRD, the IFC does not require government guarantees. U.S. companies seeking direct investment funds should contact the IFC. The Multilateral Investment Guarantee Agency (MIGA) was established in April 1988 to help investors address problems of political risk. Investors' concerns about political risk slowed the flow of foreign direct investment, which in turn slowed the creation of jobs and the transfer of modern technology. MIGA's purpose is to promote the flow of foreign direct investment among member countries by insuring investments against noncommercial (political) risk and by providing promotional and advisory services to help member countries create an attractive investment climate. U.S. companies seeking investment guarantees should contact MIGA. NOTE: The Overseas Private Investment Corporation (OPIC) also provides investment guarantees - more information below). The Inter-American Development Bank (IDB) also provides financial support to projects in Argentina at similar interest rates and with similar repayment terms. The relationship between the Inter-American Investment Corporation (IIC) and the IDB is similar to that of the IFC and the World Bank. For contact information on multilateral development bank representatives in Argentina see Chapter 11: U.S. and Country Contacts. See active World Bank-funded projects for Argentina: http://web.worldbank.org/external/projects/main?menuPK=225435&theSitePK=40941&p agePK=223716&piPK=95917&query=&status=ALL&regioncode=&countrycode=AR&sec tor=ALL&majorsector=ALL&prodline=ALL&lendinstrtype=ALL&lendinstr=ALL&majorthe meid=ALL&themeid=ALL&goalid=ALL&metathemeid=ALL&startyr=ALL&endyr=ALL&env =ALL&sortby=BOARDSORTDATE&pagesize=10&sortorder=DESC&match=all World Bank Officers for Argentina. Country Officer: Mrs. Veronica Salatino Phone: 4316-0600 Economist: 3/4/2008
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Doing Business in Argentina: 2008 C
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3/4/2008 Argentina’s banking syst
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3/4/2008 The zero percent import du
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Return to table of contents Chapter
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Policy Short-term Short/Medium Term
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meetings. The service includes at l
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approximately 87 percent of the tot
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more limited and delivery is a grow
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Goods: Preference will be given to
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material, input, or material needed
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terminals at international airports
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As in many countries, personal rela
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"Clarin", "La Nacion", and "Ambito
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Av. de Mayo 605, Piso 3 C1084AAB Bu
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Business Facilitation Service: CS A
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organizations, both Argentine or U.
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available in Chapter 9: Contacts, M
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Agricultural Machinery, Equipment a
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Electric Power Systems Overview Ret
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Food Processing and Packaging Equip
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Information Technology Overview Ret
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Other market conditions will foster
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market. The market has been growing
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Mining Sector Specialist at the U.S
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significantly smaller than in the U
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A gradual recovery has taken place
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Best sales prospects for U.S. elect
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Travel and Tourism Services Overvie
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Telecommunications Equipment and Se
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Agricultural Sectors Return to top
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Food Ingredients Overview Return to
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Pioneer Argentina: www.pioneer.com/
Page 65 and 66: Average Tariff Rates by Type of Pro
Page 67 and 68: In 2006, there was a significant in
Page 69 and 70: 3/4/2008 Certain imported goods for
Page 71 and 72: Please note that VAT and Profits Ta
Page 73 and 74: 3/4/2008 Goods covered by Decree 73
Page 75 and 76: A fax of the commercial invoice may
Page 77 and 78: you through this process. You may a
Page 79 and 80: violate export control laws is foun
Page 81 and 82: Initial period: 1 year Extension: 1
Page 83 and 84: Article 6: - Importers, manufacture
Page 85 and 86: emanufactured) and certified by a "
Page 87 and 88: 3/4/2008 Normalizacion) --composed
Page 89 and 90: 3/4/2008 continuing shortage of ind
Page 91 and 92: 3/4/2008 Record No. S01:0116093/200
Page 93 and 94: 3/4/2008 Internet: www.anmat.gov.ar
Page 95 and 96: subject to the orders, guidelines o
Page 97 and 98: In January 2002, the government end
Page 99 and 100: The GOA has established a number of
Page 101 and 102: legality of this pesification decre
Page 103 and 104: deterrent penalties such as prison
Page 105 and 106: Law 17811 of 1968 regulates public
Page 107 and 108: A recent ACO investigation of GOA p
Page 109 and 110: Foreign-Trade Zones/Free Ports Retu
Page 111 and 112: Argentine Parliament (www.diputados
Page 113 and 114: Registry of Foreign Investments. Fo
Page 115: Local bankers report that the major
Page 119 and 120: total project costs for new venture
Page 121 and 122: Return to table of contents Chapter
Page 123 and 124: C1104AC) Buenos Aires, Argentina Ph
Page 125 and 126: Buenos Aires has a large number of
Page 127 and 128: Travelers should note that since Ar
Page 129 and 130: Internet: www.buyusa.gov/argentina/
Page 131 and 132: U.S. Department of Commerce Trade I
Page 133 and 134: (Argentine Chamber of Importers) Mr
Page 135 and 136: (Ministry of Federal Planning, Publ
Page 137 and 138: C1020AC Buenos Aires Switchboard: (
Page 139 and 140: 25 de Mayo 487, primer piso C1002AB
Page 141 and 142: C1036AAJ Buenos Aires Phone: (54-11
Page 143 and 144: Fax: (54-11) 4312-7184 E-mail: mdem
Page 145 and 146: E-mail: fargosi@fibertel.com.ar BAS
Page 147 and 148: Bolivar 332, Piso 6 C1088AAH Buenos
Page 149 and 150: Mr. Klaus Bertram, President 25 de
Page 151 and 152: EXOLGAN TERMINAL PORTUARIA S.A. Mr.
Page 153 and 154: C1006ACI Buenos Aires Phone: (54-11
Page 155 and 156: Fax: (54-11) 4131-3900 E-mail: info
Page 157 and 158: www.starwoodhotels.com/sheraton/pro
Page 159: Return to table of contents Chapter
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