Creditors May Aid Argentine Bank
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J.P. Morgan Chase & Co. and Barclays are among international creditors that may take a stake in Argentina’s biggest publicly traded bank to avert its collapse, the chairman of the nation’s deposit insurance fund said.
The foreign lenders, which also include Bank of America Corp., Dresdner Bank and the World Bank’s International Finance Corp., signed letters of intent to convert as much as $400 million of loans to Banco de Galicia y Buenos Aires into shares, said Jose Jaime, who heads Seguro de Depositos and has participated in the bailout talks. The deposit insurance fund, which the government controls, also will provide financing for the rescue.
Banco Galicia ran short of cash after depositors accelerated withdrawals last year as a recession deepened.
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