Washington, D.C., June 9, 2003—The International
Finance Corporation, the private sector arm of the World Bank Group, has
restructured US$169.9 million in IFC's outstanding loans provided to Juan
Minetti S.A. (Minetti), Argentina. The restructuring of IFC's loans includes
A and C loans for IFC's own account and a B loan for the account of participating
banks. This operation is part of the overall restructuring of the company's
outstanding debt of US$276 million equivalent.
Minetti is the second biggest cement producer in Argentina and is controlled
by Holcim, the world’s number two cement manufacturing group. The
recent economic crisis in Argentina has deeply affected Minetti’s operations,
forcing the company to operate at about 30 percent of its capacity. Minetti’s
restructuring allows for a substantial reduction of its debt to a sustainable
level of US$101.5 million.
Jyrki I. Koskelo, IFC Special Operations Director, said, "The successful
closure of Minetti’s debt restructuring was largely due to the strong
commitment of its shareholder. It must serve as an example for other Argentine
companies, many of which are currently negotiating voluntary restructuring
of their financial obligations."
Bernard Pasquier, IFC Director for Latin America, added, "We hope
that the closure of this restructuring, the first of this magnitude, will
have a demonstration effect and contribute to restore business confidence
Suellen L. Lazarus, IFC Director of Syndications and International Securities,
said, “This is a very significant restructuring in IFC’s B loan portfolio,
and shows IFC’s commitment with Argentina. We are very pleased that
the banks were supportive of the restructuring effort.”
IFC's mission (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $34 billion of
its own funds and arranged $21 billion in syndications for 2,825 companies
in 140 developing countries. IFC’s committed portfolio at the end of FY02
was $15.1 billion.