Banco Latinoamericano de Exportaciones – Bladex has announced the receipt of a US$56mn prepayment on an Argentine loan. The bank will account for the impact of this prepayment by reversing allocated loan loss provisions back to earnings. As a result, Bladex expects to generate a profit for accounting purposes of about US$43mn, which will increase the bank’s equity capital by the same amount.
Along with the receipt of scheduled principal payments, other prepayments, and asset sales, this prepayment will result in a reduction of the bank’s credit portfolio in Argentina from US$360.1mn at June 30, 2004 to around US$253.1mn at October 8, 2004.
Jaime Rivera, CEO of Bladex states: “This significant reduction in our exposure in Argentina validates our strategy that supporting our clients is the best way to maximise their repayment ability and speaks unequivocally of Bladex’s institutional strengths. We look forward to continued progress in this portfolio, and to market conditions gradually allowing us to again finance trade in an important country that we know well, and where we have a number of valuable client relationships.”
Bladex is a supranational bank originally established by the central banks of Latin American and Caribbean countries to finance and promote trade in the Region. Based in Panama, its shareholders include central banks and state-owned entities in 23 countries in the region, Latin American and international commercial banks, and institutional and retail investors.