Of Chinese origin, ICBC is the largest bank in the world. He landed in Argentina ten years ago with a strong profile linked to foreign trade and in recent years he has been navigating the restrictions that the Argentine government imposes on imports and which make it difficult for companies to access credit. Alejandro Ledesma, the bank’s general manager, spoke to Clarín about the challenges the bank and the country face before 2023 with rising inflation and low growth.
-How are you handling foreign trade financing amidst so many restrictions?
-In this context we are one of the few banks that pre-finance imports. Traditionally, the bank has always been very strong in foreign trade. It is clearly a challenge to work in this sector, our team must always be up to date in interpreting the rules and regulations which are continuously adjusted. Clients look to us to accompany them; They know the subject and are patient enough to wait for their imports to be approved, but in the meantime, access to credit is essential to their business.
-How are the other credit lines managed by the bank performing?
-This year the demand for credit was declining. The lines that grew the most were the subsidized ones, for the rest of the lines there was not much demand from the private sector. We will continue to focus on everything related to foreign trade. In the corporate segment, we work particularly with the energy and mining sectors. We have several lithium-related projects and we believe they will attract investment to the country. We have always had a strong stake in agriculture, where we will continue to grow. We have developed the pawnshop segment, especially on cars, buses and coaches, where the bank is the leader in the sector.
-And what happened this year with consumer finance lines?
-This year has been very good for consumption with Ahora 12 interest-free installment promotions. Most people consume through these programs. We have an ICBCMall where we make special offers for card consumption. It’s a kind of marketplace born as a strategy to build customer loyalty and over time we’ve been surprised by the way it’s grown.
-Amid the private sector’s difficulties in accessing credit, the public sector has become a large demand for financing from private banks. Do you fear that there is an overexposure of the banks operating in Argentina to public debt?
-As long as there is strong liquidity in the system, I’m not concerned about the level of exposure. Today, deposit growth is still good. But it is true that the government faces a challenge to roll over the debt. The good thing is that, unlike what happened in the past, this time most of the debt is in pesos. The biggest challenge facing Argentina is to bring down inflation and give credibility to its currency.
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Source: Clarin
