Argentina joins China’s Belt and Road initiative, eyes US$23 billion investment

[Shotgunner51]

Argentina joins China’s Belt and Road initiative, eyes US$23 billion investment​

President Alberto Fernández signs Argentina up to China’s sweeping global initiative; Final details discussed at bilateral meeting between Peronist leader and Chinese Premier Xi Jingping.

Argentina’s government has confirmed that the country has signed up to China’s sweeping Belt and Road initiative, paving the way for investments worth more than US$23 billion.

The deal is expected to be finalised in the next few hours during a closely watched bilateral meeting between President Alberto Fernández and Chinese Premier Xi Jinping, as part of the Argentine leader's three-day visit to Beijing. A memorandum of understanding committing both nations to the deal has already been signed.

The news, confirmed by the Xinhua news agency and government spokespersons to the La Nación daily in the early hours of Sunday morning, will see the two nations “sign different agreements that guarantee financing for investments and works for more than US$23.7 billion, generating a new milestone in the bilateral relationship that in the last 15 years has expanded and strengthened notably."

Xi launched BRI in 2013, aiming to harness China's strengths in financing and infrastructure construction to "build a broad community of shared interests" throughout Asia, Africa and Latin America.

More than 140 nations worldwide have signed up to the programme, which promotes Chinese trade and investment and allows Beijing to access new markets and expand its global influence with financing streams and proprietary technology such as 5G telecommunications.

According to China’s Commerce Ministry, Chinese firms have to date invested more than US$20 billion via the initiative.

Argentina’s Foreign Minister Santiago Cafiero and He Lifeng, Chairman of China’s National Development and Reform Commission, signed a memorandum of understanding confirming the deal between the nations, Xinhua reported.

Read More: https://batimes.com.ar/news/argenti...stop-depending-on-imf-and-united-states.phtml

According to Cafiero, the objective of working with China is to "substantially increase the local works financed through the jointly agreed plans. Always with the same objective: to strengthen the Argentine economy and provide jobs."

New financing

Argentina’s government hopes the deal will allow it to obtain vital funds it believes will assist the nation’s economic recovery. Government sources described the deal as “a new milestone in the bilateral relationship, which in the last 15 years has expanded and strengthened considerably," in comments reported by the Noticias Argentinas news agency.

According to reports, under the terms of the agreement, Chinese financing will be available to Argentina in two tranches of US$14 billion and US$9.7 billion, with Argentina needing to sign up to Belt and Road in order to access it.

Xinhua, the Chinese state news agency, said that Xi had called for the two nations to implement existing hydropower and railway projects and deepen cooperation in trade, industry, infrastructure, investment and anti-epidemic efforts in his meeting with Fernández.

Read More: https://batimes.com.ar/news/economy...pays-imf-us370-million-in-debt-interest.phtml

The Argentine leader expressed willingness to step up work with China on vaccine production and in other areas, Xinhua reported on Sunday morning.

A host of other documents were also signed for joint cooperation on areas include climate change, the digital economy, space, technology, education, agriculture, public media and nuclear energy, according to reports.

– TIMES/NA/PERFIL

Argentina joins China’s Belt and Road initiative, eyes US$23 billion investment

President Alberto Fernández signs Argentina up to China’s sweeping global initiative; Final details discussed at bilateral meeting between Peronist leader and Chinese Premier Xi Jingping.

batimes.com.ar

 

[nang2]

To a country that has defaulted on its debts a few times in the last 20 years.

 

[WinterFangs]

Abit off topic, but which country has received the most lucrative investment/offer from China for CPEC/belt and road initiative, and which country besides China of course is the centre of this initiative?

 

[Beast]

To a country that has defaulted on its debts a few times in the last 20 years.

Precisely, they default. They need to find ways to increase wealth. If not, when do u expect them to pay off debt?

 

[Trango Towers]

To a country that has defaulted on its debts a few times in the last 20 years.

After ww2 this was the richest country and that's why all the nazis went there. Its did exactly what America is doing today. Just time

 

[nang2]

Precisely, they default. They need to find ways to increase wealth. If not, when do u expect them to pay off debt?

If a banker lends with such an attitude, he would go out of business by the end of the day.

 

[Shotgunner51]

To a country that has defaulted on its debts a few times in the last 20 years.

Exactly, do expect MORE defaults of their sovereign bonds (which has happened 9 times till this moment) coming, especially local law bonds. If you are not vulture fund or IMF, stay away from the bond game. The bond situation is similar to that of US i.e. massive & recurring government deficits, though it has improved vis-a-vis the worst time during 1998~2001.

While staying away from sovereign bonds, go FDI. Sectors suitable for Chinese FDI include lithium (Argentina sits within South America’s so-called “lithium triangle”), copper, agriculture, strategic-geopolitical (e.g. China PLASSF already operates a space tracking base in Patagonia), as well as operating essential infra (e.g. China will invest $8B in a new nuclear plant 100km from Buenos Aires) around these target assets. Knowing sovereign bond (same for G2G loan) will go messy, and that its aftermath like debt-equity swap is unpredictable, directly invest in private equity from day one while get prepared for ARS fluctuation (Argentine Peso is expected to continue sliding in the long run, commodity like metals are best currency).

 

[nang2]

Exactly, do expect more default of their sovereign bonds (which has happened 9 times till this moment), especially local law bonds. If you are not vulture fund or IMF, stay away from the bond game. The situation is similar to that of US i.e. massive government deficit, though it has improved vis-a-vis the worst time during 1998~2001.

View attachment 813783

While staying away from sovereign bonds, go FDI. Sectors suitable for Chinese FDI include lithium (Argentina sits within South America’s so-called “lithium triangle”), copper, agriculture, strategic-geopolitical (e.g. China PLASSF already operates a space tracking base in Patagonia), as well as operating essential infra (e.g. China will invest $8B in a new nuclear plant 100km from Buenos Aires) around these target assets. Knowing sovereign bond (same for G2G loan) will go messy, and that its aftermath like debt-equity swap is unpredictable, directly invest in equity from day one and get prepared for ARS fluctuation (Argentine Peso is expected to continue sliding in the long run, commodity like metals are best currency).

vultures don't just have sharp beaks but also have sharp talons. At one time, US and UK teamed up and offered a sizeable loan to Haiti. The American side asked the British side: what if they don't pay? The British side answered: they will with your marines and ours. I hope Chinese marines could make those unpredictable debt swaps predictable.

 

[Shotgunner51]

vultures don't just have sharp beaks but also have sharp talons. At one time, US and UK teamed up and offered a sizeable loan to Haiti. The American side asked the British side: what if they don't pay? The British side answered: they will with your marines and ours. I hope Chinese marines could make those unpredictable debt swaps predictable.

Read again, zero bond (debt) purchased from day one, how to ask for debt-equity swap? It's equity from day one, no need to predict or send marines.

 

[nang2]

Read again, zero bond (debt) purchased from day one, how to ask for debt-equity swap? It's equity from day one, no need to predict or send marines.

You do know that equity is weaker than loan in term of the claim on asset, don't you?

 

[Shotgunner51]

You do know that equity is weaker than loan in term of the claim on asset, don't you?

No I don't, do you own any equity, like a private company, or public shares like $AAPL or $TSLA? If so, explain your argument will you?

 

[nang2]

No I don't, do you own any equity, like a private company, or public shares like $AAPL or $TSLA? If so, explain your argument will you?

I don't have to teach you finance 101. That would be an insult to you. I trust you can learn it yourself.

 

[SaadH]

After ww2 this was the richest country and that's why all the nazis went there. Its did exactly what America is doing today. Just time

Difference is US military, it will nuke the world before it defaults. If Argentina was military powerhouse, it would have never defaulted.

 

[Shotgunner51]

I don't have to teach you finance 101. That would be an insult to you. I trust you can learn it yourself.

You do know that equity is weaker than loan in term of the claim on asset, don't you?

No I can't understand your so-called finance 101, I guess most PDF forumers are puzzled by your weird argument.

Equity and loan are both assets themselves, of different type. Equity is the value attributable to the owner of a business (or net asset), while loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. So how does that make one "stronger" or "weaker" than the other?

Say you own 10% equity of a company as well as some bonds issued by the same company, how is one "weaker in term of the claim on asset" than the other?

Equity Meaning: How It Works and How to Calculate It

Equity typically refers to shareholders' equity, which represents the residual value to shareholders after debts and liabilities have been settled.

www.investopedia.com

What Is a Loan, How Does It Work, Types, and Tips on Getting One

A loan is money, property, or other material goods given to another party in exchange for future repayment of the loan value amount with interest.

www.investopedia.com

 

[nang2]

No I can't understand your so-called finance 101, I guess most PDF forumers are puzzled by your weird argument.

Equity and loan are both assets themselves, of different type. Equity is the value attributable to the owner of a business (or net asset), while loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. So how does that make one "stronger" or "weaker" than the other?

Say you own 10% equity of a company as well as some bonds issued by the same company, how is one "weaker in term of the claim on asset" than the other?

Equity Meaning: How It Works and How to Calculate It

Equity typically refers to shareholders' equity, which represents the residual value to shareholders after debts and liabilities have been settled.

www.investopedia.com

What Is a Loan, How Does It Work, Types, and Tips on Getting One

A loan is money, property, or other material goods given to another party in exchange for future repayment of the loan value amount with interest.

www.investopedia.com

Learn the bankruptcy proceeding and you would know more.