Argentina reportedly close to signing US$35bn financing deal with China

Argentina is reportedly close to signing an initial US$35bn agreement with China for a five-year investment plan that would benefit major energy and infrastructure projects.

The document will be signed on Thursday before President Alberto Fernández begins a visit to Beijing that is expected to see further financing talks, Argentine daily Ámbito reported, quoting unnamed sources within the federal government.

Some of the projects that are expected to be included in the financing agreement are:

Cauchari photovoltaic plant expansion (US$400mn)
Atucha III Nuclear Plant (US$8.5bn)
Néstor Kirchner and Jorge Cepernic hydro dams (US$4bn)

The financing will also be for railway modernization but will not include 5G due to Argentina’s lack of adequate infrastructure for the technology, according to the sources.

Another announcement expected for Fernández’ China visit is an electric car and lithium battery factory in Santa Fe province by Chinese firm Chery.

The congressional defeat of the 2022 budget bill, which would have seen increased public investment in infrastructure, has left the government seeking financing to at least keep works going. And this is taking place while Argentina is in difficult debt negotiations with the IMF. 

“The difference we have with the IMF is the speed of fiscal consolidation and expenditures and incomes. We don’t want to hurt demand when the economy is recovering,” economy minister Martín Guzmán recently told French newspaper Le Fígaro.