Close panel

Close panel

Close panel

Close panel

Economy

Economy

The outlook for Argentina’s economy in 2018 remains optimistic, with GDP expected to expand by nearly 3% for the second consecutive year. However, achieving sustained growth and attracting international investment will depend, not just on stable macro indicators, but on long-lasting structural reforms. While the initial signs of economic recovery became apparent in the second half of 2016, it wasn’t until mid-2017 that growth rates began to pick up across most industries.

All organizations operate at what is known as the edge of chaos. It is a transition space between order and disorder, a region of bounded instability, where forces both progressive and conservative battle for control. A manager may have a three-year strategy, and the protocol, teams and departments in place to deliver it, but realizing that strategy means contending with countless disruptive events; a new competitor entering the market, a shift in consumer behavior – even, perhaps, the manager’s own desire to retire to a quiet village on the countryside.

The European Investment Bank (EIB) and BBVA have joined forces to help provide Spanish SMEs the funding they need to implement their digitization and innovation strategies. EIB Vice President Román Escolano, and the Head of BBVA Spain, Cristina de Parias, signed an agreement today in Madrid through which the EIB will provide BBVA €150 million to finance SME investment projects related to innovation and digitization. BBVA will provide an additional €150 million of its own resources to fund this new line of credit.

Photo covered bonds

Positive market conditions and investor appetite have helped BBVA to get an excellent reception for its sixth issue of CoCos. The Group has issued a $1 billion bond, with the lowest coupon in dollars for an issuer from southern Europe (6.125%), and the longest maturity (perpetual, with a ‘call’ option starting in the tenth year). Registration of a prospectus with the U.S. Securities and Exchange Commission (SEC) has prompted a bigger participation from American, European and Asian investors.