Argentina central bank chief pitches gov't infrastructure bonds
Argentina central bank chief pitches gov't infrastructure bonds
"The need for infrastructure […] is probably the most critical conversation," said BlackRock's Larry Fink in conversation with Federico Sturzenegger, Chairman of Argentina's Central Bank, at a conference at AS/COA.
The demand for infrastructure investment is at all-time highs and Argentina’s central bank chief believes the creation of a new type of infrastructure bond could stimulate capital flows and offer high investor returns.
Speaking at the Americas Society and Council of Americas conference on Argentina in New York on Tuesday, Federico Sturzenegger (pictured left) was questioned by BlackRock chief executive Larry Fink (pictured right) on the future of his country’s economy and the discussion turned to its infrastructure needs.
Argentina will be hosting the next G20 meeting in Buenos Aires in 2018 and the central bank leader said the need to improve access to infrastructure capital would be one of the key talking points. One of the options he discussed with Fink was the creation of a new type of infrastructure bond, implying that it could be a sovereign-backed security.
In the same vein as the introduction of Brady Bonds in 1989 kick-started the emerging market sovereign debt sector and was instrumental to emerging market growth, Sturzenegger believes these infrastructure bonds could have a similarly positive impact on emerging economies...
