No More Easy Money
The upheaval in Argentina has terrified providers of trade finance who are charging more for loans or want borrowers to set up complex structures to lay off risk. Cheap money across the region is a thing of the past.
Trade finance used to be one of the easiest and cheapest
ways for Latin American companies to raise money until the
events in Argentina turned the market upside down. Lenders have
become a lot more attuned to risk now as they watch one
blue-chip company after another tumble in Argentina. Alberto
Conde, head of corporate banking and trade finance for Latin
America at Banco Bilbao Vizcaya Argentaria in New York, says,
"It's back to basics. Most of the banks not actively present in
the region on a lending basis tend to go back to the core
clients they know well and cross sell to these clients and
basically support them. It's all relationship-driven and not
driven by looking for a new customer base. [Banks] are more
risk-conscious and they are driving pricing upward." Richard
Tull, one of the founders of the online trade finance
marketplace LTP, says, "Argentina...
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