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BORROWINGS | 12 Months Ended
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Dec. 31, 2019
Financial Instruments [Abstract] |
BORROWINGS | NOTE 19 – BORROWINGS The principal balances of outstanding borrowings under lines of credit with banks and financial institutions were as follows:
|  | As of December 31,
|  | 2019 |  | 2018
HSBC Bank and Citibank - Syndicated loan (United States) |  | 50,363 |  |  | — |
Banco Santander (Colombia) |  | 549 |  |  | — |
Banco Supervielle (Argentina) |  | 309 |  |  | — |
Banco ICBC (Argentina) |  | 96 |  |  | — |
Others |  | 69 |  |  | — |
TOTAL |  | 51,386 |  |  | — |
Such balances were included as current and non-current borrowings in the consolidated statement of financial position as follows:
|  | As of December 31,
|  | 2019 |  | 2018
Current borrowings |  | 1,198 |  |  | — |
Non-current borrowings |  | 50,188 |  |  | — |
TOTAL |  | 51,386 |  |  | — |
On November 1, 2018, Globant LLC, the Company's U.S. subsidiary, entered into an Amended and Restated Credit Agreement by and among certain financial institutions, as lenders, and HSBC Bank USA, National Association, as administrative agent, issuing bank and swingline lender. The A&R Credit Agreement amends and restates the existing Credit Agreement dated as of August 3, 2017, which provided for a secured revolving credit facility under which the Company may borrow up to 40,000 in advances. Under the A&R Credit Agreement, Globant LLC may borrow (i) up to 50,000 in a single borrowing on or prior to May 1, 2019 under a delayed-draw term loan facility and (ii) up to 150,000 under a revolving credit facility. In addition, Globant, LLC may request increases of the maximum amount available under the revolving facility in an agregament amount not to exceed 100,000. The maturity date of the facilities is October 31, 2023. Pursuant to the terms of the A&R Credit Agreement, interest on loans extended thereunder shall accrue at a rate per annum equal to London Interbank Offered Rate ("LIBOR") plus 1.75%. Globant LLC’s obligations under the A&R Credit Agreement are guaranteed by the Company and its subsidiary Globant España S.A., and are secured by substantially all of Globant LLC’s now owned and after-acquired assets. The A&R Credit Agreement also contains the following covenants: delivery of certain financial information; payment of obligations, including tax liabilities; use of proceeds only for transaction costs payments, for lawful general corporate purposes and working capital; Globant LLC's Fixed Charge Coverage Ratio shall not be less than 1.25 to 1.00; Globant LLC's Maximum Total Leverage Ratio shall not exceed 2.50 to 1.00; Globant LLC or any of its subsidiaries shall not incur in any indebtedness; Globant LLC or any of its subsidiaries shall not assume any Lien; restricted payments not to exceed 10,000 per year; advances to officers, directors and employees of the Borrower and Subsidiaries in an aggregate amount not to exceed 50 outstanding at any time; Globant LLC shall not maintain intercompany payables owed to any of its Argentina Affiliates except to the extent (i) such payables are originated in transactions made in the ordinary course of business and (ii) the aggregate amount of such payables do not exceed an amount equal to five times the average monthly amount of such Affiliates’ billings for the immediately preceding 12 month period; Globant LLC's capital expenditures limited to 10% the Company's consolidated net revenue per year and Globant LLC's annual revenue is to remain at no less than 60% of the Company's consolidated annual revenue. Movements in borrowings are analyzed as follows:
|  | As of December 31,
|  | 2019 |  | 2018 |  | 2017
Balance at the beginning of year |  | — |  |  | 6,011 |  |  | 217 |
Borrowings related to business combination (note 25.12) (1) (4) |  | 1,290 |  |  | — |  |  | — |
Proceeds from new borrowings (2) (5) |  | 90,523 |  |  | — |  |  | 22,000 |
Payment of borrowings (3) (5) |  | (41,570 | ) |  | (6,163 | ) |  | (16,293 | )
Accrued interest (4) |  | 1,226 |  |  | 152 |  |  | 95 |
Foreign exchange (4) |  | (83 | ) |  | — |  |  | (8 | )
TOTAL |  | 51,386 |  |  | — |  |  | 6,011 |
(1) Corresponds to borrowings with Banco de Bogotá and BBVA, with maturity date in September 2019, ICBC with maturity date November 2020 and Supervielle with maturity date in July 2022. These borrowings do not have covenants.
(2) | On April 12, 2019, August 6, 2019, August 8, 2019 and October 28, 2019 Globant LLC borrowed 25,000, 30,000, 10,000 and 25,000, respectively under the Amended and Restated Credit Agreement. From the loans mentioned, 50,000 will mature on October 31, 2023 and 40,000 before December 31, 2019. On September 26, 2019, Avanxo borrowed 523 from Banco Santander with maturity date on March 26, 2020. During 2017, Sistemas Globales S.A. and IAFH Global S.A., entered into 6 loan agreements with Santander Rio for a total amount of 16,000. These loans matured before December 31, 2017. On December 19, 2017, Globant LLC has borrowed 6,000 under the credit facility mentioned above. This loan matured on July 23, 2018.
(3) During the year ended on December 31, 2019, the principal payments were as follows, Globant LLC paid 40,301 of the 40,000 borrowed under the Amended and Restated Credit Agreement. In September 2019, Avanxo Colombia paid 520 related to the borrowing with BBVA and paid 37 in interests regarding the borrowing with Santander in November 2019. During the year ended in December 31, 2019, BSF, S.A paid 52 and 39 regarding the borrowings with Supervielle and ICBC, respectively. On July 23, 2018, Globant LLC paid 6,163 borrowed in December 2017, under de A&R Credit Agreement. During December 2017, the Company through its Argentine subsidiary, Sistemas Globales S.A and IAFH Global S.A., paid 16,293 of the loan agreements acquired with Santander Rio in 2017. (4) Non-cash transactions. (5) Cash transactions.

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