August 30, 2003
Back on a firm foundation.
Bladex, the trade finance bank,
realized it was in trouble in
Argentina well before the country's
default in December 2001. Unlike
institutional investors that had begun
bailing out of Argentina, banks could
not cut and run overnight. Bladex had a
billion dollar in loans and credit lines at
stake, and long-standing client
relationships to think about. Bladex
executives knew that the country and
the bank's clients were in trouble, but
reckoned it could make it through,
managing risk as best it could.
When the government dismantled
Argentina's currency board in J
An ill-starred diversification plan at Bladex put it in the cross hairs of Argentina's collapse. But today the trade finance bank is recapitalized and focusing on traditional lending.