NATIONAL INTELLIGENCE DAILY TUESDAY AUGUST 3, 1976[SANITIZED] - 1976/08/03

• Document Type: SPECIALCOLLECTION
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 03005482
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 2
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: August 3, 1976

TUESDAY AUGUST 3, 1976
Approved for Release: 2018/10/02 C03005482
The
National Intelligence
D
3.5(c)
Published by the Director of Central Intelligence for Named Principals Only
VOLUME 3, NUMBER 181
Copy No. 261
Argentina: Loans from Abroad
Argentina apparently will receive near-
ly $1 billion in commercial loans this year
from financial institutions in North
America and Western Europe.
Economics Minister Martinez de Hoz,
on his recent eight-country swing through
Western Europe, reportedly received
promises of loans totaling over $300
million from West Germany, France, the
UK, Switzerland, Italy, Spain, Belgium,
and the Netherlands. This sum, together
with $500 million already promised by
US banks, a probable $80 to $100 million
from Canada, and $300 million practical-
ly assured from the International
Monetary Fund, should cover Argentina's
debt service payments for 1976.
Most of the loans will have four- or
five-year maturities, providing Argentina
an opportunity to build a stronger foreign
exchange position before large annual
payments are again required.
The majority of the private loans are
contingent on International Monetary
Fund approval of a standby credit in addi-
tion to its $300 million loan. The IMF
decision, likely this month, probably will
be favorable. The government's success in
reducing inflation�from 38 percent in
March to under 3 percent in June�and in
halving the huge fiscal deficit will
probably convince the IMF that the junta
is adequately controlling the economy
even though the budget deficit is still
large.
Some lenders are also waiting to see
whether the country can now recover from
the recession that was deepened by the
successful anti-inflationary actions.
Prospects for success have improved since
agriculture, the key sector in recovery,
received a significant boost last week
when heavy rains broke the drought that
was retarding wheat planting
NR
3.5(c)
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Approved for Release: 2018/10/02 C03005482
Approved for Release: 2018/10/02 C03005482
Approved for Release: 2018/10/02 C03005482
NR