Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 09BUENOSAIRES1384, Argentina Economic and Financial Review, December 11-17,

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #09BUENOSAIRES1384.
Reference ID Created Released Classification Origin
09BUENOSAIRES1384 2009-12-21 15:27 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Buenos Aires
VZCZCXRO2025
RR RUEHAO RUEHCD RUEHGD RUEHGR RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD
RUEHRS RUEHTM
DE RUEHBU #1384/01 3551529
ZNR UUUUU ZZH
R 211527Z DEC 09
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 0226
INFO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEAIIA/CIA WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHSO/AMCONSUL SAO PAULO
UNCLAS SECTION 01 OF 03 BUENOS AIRES 001384 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EINV ETRD ELAB EAIR AR
SUBJECT: Argentina Economic and Financial Review, December 11-17, 
2009 
 
REF: 09 BUENOS AIRES 1175 
 
1. (U)  Provided below is Embassy Buenos Aires' Economic and 
Financial Review covering the period December 11-17, 2009.  The 
unclassified email version of this report includes tables and 
charts tracking Argentine economic developments.  Contact Econ OMS 
Megan Walton at WaltonM@state.gov to be included on the email 
distribution list.  This document is sensitive but unclassified. 
It should not be disseminated outside of USG channels or in any 
public forum without the written concurrence of the originator.  It 
should not be posted on the internet. 
 
 
 
--------------------------------------------- ---------------------- 
-------------------------- 
 
The GoA creates a BCRA reserves fund to guarantee 2010 debt 
payments 
 
--------------------------------------------- ---------------------- 
-------------------------- 
 
 
 
2. (SBU)  On December 14, President Cristina Fernandez de Kirchner 
and Economy Minister Boudou announced the creation of a fund with 
37% of the BCRA's "excess reserves" (about $6.6 billion) for the 
purpose of covering 2010 GoA debt payments, both interest and 
principal.  BCRA reserves stand at $ 47.2 billion and "excess 
reserves" are defined as the amount of reserves that exceed the 
monetary base (cash in circulation plus liquidity requirements). 
The new fund is called the "Bicentennial Fund for Stability and 
Reduced Indebtedness."  It will be used to guarantee external debt 
service payments, which, according to the President, should clear 
any doubts about whether the country will be able to meet its 2010 
external debt service obligations to bondholders and multilateral 
institutions.  It also demonstrates the GoA's willingness to pay. 
On December 15, the GoA published in the Official Gazette the 
decree (N 2010) delineating some of the implementation details 
surrounding the creation of the Bicentennial Fund.  The decree 
noted that the GoA will issue a non-tradable 10-year bullet bond to 
the BCRA in exchange for the $6.6 billion in reserves, paying an 
interest rate similar to the one earned by BCRA reserves with a cap 
of Libor minus 1% (below market rates).  It is yet unclear whether 
this fund will act just as a guarantee or whether the government 
intends to use the funds to actually pay external debt service. 
 
 
 
3. (SBU) According to most analysts, using BCRA reserves to pay GoA 
obligations is not a positive development since this measure 
weakens the BCRA balance sheet and compromises its independence. 
It also lessens the need for the GoA to control expenditure growth 
by providing the resources to enable a loose fiscal policy. 
Initially, however, markets reacted positively and tightened the 
Argentine sovereign spread, viewing the creation of the fund as a 
solid guarantee against a major credit event in 2010.  (For further 
details and analysis see Buenos Aires 1291.) 
 
 
 
--------------------------------------------- ---------------------- 
------- 
 
The GoA reportedly to launch debt exchange in mid-January 
 
--------------------------------------------- ---------------------- 
------- 
 
 
 
4. (SBU)  Minister of Economy Amado Boudou reportedly stated that 
the GoA will file the necessary paperwork with the US Securities 
and Exchange Commission (SEC) to make a formal restructuring offer 
to holdouts who did not participate in the 2005 debt restructuring. 
According to local press reports, the GoA expects to receive SEC 
clearance by January 12 and to unveil the formal offer by 
mid-January.  An embassy banking sector contact told econ officers 
that, according to Secretary of Finance Hernan Lorenzino, former 
President Nestor Kirchner supports moving forward with the debt 
exchange offer.  He added that the deal should be completed by the 
end of February. 
 
BUENOS AIR 00001384  002 OF 003 
 
 
5. (SBU)  On December 17, local press reports said that, according 
to GoA sources, the GoA intends to toughen the terms of the holdout 
deal, lowering the overall value of the offer from a projected 
$50-52 per $100 of face value to approximately $46.  The reports 
indicate that the higher offer was considered to be unnecessarily 
generous. 
 
 
 
--------------------------------------------- ---------------------- 
------------- 
 
The GoA to auction early payments on debt 
 
--------------------------------------------- ---------------------- 
------------- 
 
 
 
6. (SBU)  Minister of Economy Amado Boudou stated December 15 that 
the GoA will conduct an auction for the early payment of some 
scheduled debt service in 2010, including the dollar denominated 
Boden 2012, which has a heavy amortization schedule of about $2.2 
billion over the next three years, and some Guaranteed Loans (PGs) 
worth about $530 million.  According to the Minister, the GoA would 
only accept early payment proposals that offer an attractive 
discount. The payment is supposed to come from the $6.6 billion 
fund announced December 14 (see first item above).  If this auction 
does take place, it would indicate that the Bicentennial Fund would 
not just serve as a guarantee for 2010 debt service payments but 
would also be used to actually fund debt payments. 
 
 
 
--------------------------------------------- ------------------- 
 
The GoA announces tax moratorium in attempt to increase 2010 
revenues 
 
--------------------------------------------- ------------------- 
 
 
 
7. (SBU)  On December 16, Minister of Economy Amado Boudou and AFIP 
(Tax Revenue Agency) Director Ricardo Echegaray announced that the 
GoA will launch a tax moratorium for unpaid taxes for the period 
between January 1, 2008 and October 31, 2009.  The GoA will offer a 
two-year payment plan with an interest rate of 9.6%.  With this 
measure, the GoA seeks to increase 2010 tax collection by ARP 8.5 
billion from about 800,000 individuals and companies.  However, 
according to private estimates, the plan will raise only ARP 6 
billion over the next two years.  In a press conference, the 
Minister stated that this plan is a countercyclical measure that 
will allow companies to start recovering without being burdened by 
past debts. 
 
 
 
--------------------------------------------- --- 
 
November CPI up 0.8% m-o-m 
 
--------------------------------------------- --- 
 
 
 
8. (SBU)  National statistics agency INDEC announced December 11 
that the November CPI increased 0.8% m-o-m, similar to October's 
increase and in line with what most private analysts expected.  As 
during the past several months, some observers have discerned a 
gradual trend towards convergence between INDEC's inflation numbers 
and actual inflation, as measured by private analysts.  Some view 
this as a possible indication that the GoA has decided to gradually 
improve the accuracy of its reporting. 
 
 
 
9. (SBU)  Inflationary pressures in November were widespread, with 
the highest increases in the prices of: food and beverages (1.1%), 
clothing (1.1%), other goods and services (1.0%), and education 
 
BUENOS AIR 00001384  003 OF 003 
 
 
(0.8%).  The lowest price increases were in housing and 
transportation, and communications, both of which increased 0.4%. 
According to INDEC, the accumulated CPI increase for the first 
eleven months of the year was 6.7%, compared to private estimates 
of about 15%.  Inflationary pressures are accelerating as many 
analysts are revising their 2009 CPI estimates upwards to 15% or a 
bit higher for the year.  For 2010, analysts' estimates of 
inflation range from 16-20%. 
 
 
 
--------------------------------------------- ------------- 
 
Balance of Trade Surplus Increases 
 
--------------------------------------------- ------------- 
 
 
 
10. (SBU)  Through November of this year, the Argentine trade 
balance is in surplus by $15.7 billion, a 32% increase over the 
$11.2 billion surplus of 2008, according to INDEC figures.  In the 
first eight months of the year, exports fell 24%, while imports 
fell by an even greater 39%.  In November, the trade surplus was 
$1.2 billion, an increase of 73% over the $745 million surplus 
recorded in November 2008.  GoA November export figures reverse the 
negative year-on-year trend in exports, which for the month are up 
1% over November 2008.  November imports were down 12% from 
November 2008, also indicating an increasingly positive trend. 
MARTINEZ