Banks return US$426mn to central bank

Argentine banks have repaid 1.23bn pesos (US$426mn) of their debts to the central bank during the last nine months, based on loans received to weather last year's financial storm, local financial daily Cronista quoted economy minister Robert Lavagna as saying. However, the amount only represents 7% of the total debt, which currently stands at 17.1bn pesos. The fact that the banks have been able to pay back some of their debts - albeit a small portion - is yet another sign the banks are beginning to recover from the financial crisis, Fitch Ratings banking analyst Ana Gavuzzo told BNamericas from Buenos Aires. Earlier signs of recovery have been the lifting of the freeze on deposits (imposed in late 2001), the public making new deposits in the banks and the gradual return of loan demand and supply. According to figures from the Economy Ministry picked up by Cronista, the largest debtors in the banking system are Galicia (5.5bn pesos), Bapro (4.5bn pesos), Nacion (4.6bn pesos), and BBVA Frances (NYSE: BFR) (1.8bn pesos).