On Friday, the Ministry of the Economy placed three peso bonds for which it received 165,866 million dollars, of which 74% linked to a bond maturing in 2027. In the month it thus obtained a net loan of almost 33,500 million dollars.

In this tender, the National Treasury faced $162,091 million in maturities, highlighted the economic portfolio through a release, and highlighted that the menu of instruments offered consisted of three new securities.

A Discount Letter (LEDE) due on March 31, 2023, a Treasury Bond (Bonte) payable on November 23, 2027 and a Liquidity Letter (Lelite) due on December 16, 2022 intended exclusively for Investment Commons Funds.

620 bids with a face value of $175,941 million were received in the bidding, awarding $172,206 million, which represented an effective value of $165,866 million.

Of the total loan obtained, 26% was represented by nominal fixed-rate instruments maturing in 2022 and 2023, while the remaining 74% was represented by variable-rate instruments, which will be disbursed on 23 November 2027.

According to a report by the consulting firm Quantum Finance, headed by former Finance Secretary Daniel Marx, the Treasury’s November-December borrowing requirement is $1.9 trillion.

“In an environment of apparent lower propensity for debt in pesos, obtaining financing could raise some concerns about compliance with the Treasury monetary financing limit agreed with the IMF. $346,000 million, and using cash financing still available within that limit, the funds to be raised are reduced to $1.12 trillion, implying a principal rollover rate of 133% or 103% principal maturities and interests of the period,” Quantico said.

The report warns that, although last week’s exchange served to reduce deadlines in the coming months, “questions are being raised about the projections of needs for the following months. In the current context, the renewal of next year’s deadlines will present itself as provocative”.