Sony Life Insurance Co., the insurance unit of Sony Corp., is expected to post an appraisal loss of 7 billion yen to 8 billion yen on its Argentine government bond holdings for the fiscal year to March 31, company officials said Monday.
The book value of Sony Life’s Argentine debt holdings is more than 10 billion yen, they said.
“But even after posting such a valuation loss, there is no problem with our financial health as we still have more than 30 billion yen in latent profits on overall securities holdings,” a company spokesman said.
The officials said Sony Life purchased the Argentine government bonds in 1996. The Argentine debts collapsed later as the country fell into a financial crisis.
The parent firm Sony has already reported an appraisal loss of 8.4 billion yen for Sony Life’s Argentine debt holdings in its consolidated third-quarter earnings.
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