Despite increased investor caution in recent weeks, The government passed the last major test of the year of debt in pesos by issuing this Wednesday 770,000 million dollars, almost double what was due in the week. Thanks to an arsenal of securities and the apparent help of the public sector, the Ministry of the Economy has obtained additional funding which it would allow it to cover the fiscal deficit and close the financial program agreed with the IMF.
“$1.2 trillion in bids were submitted. $770,000 million in bids were accepted, far exceeding the $412,000 million that was rolled over. public sector has been extended by more than 360 billion pesos It is the largest offer presented since 2020 to date,” Economy Minister Sergio Massa confirmed on Twitter.
The day was unusual because at the end of this edition the official result was not known with the amounts and the assigned tariffs, which the Palazzo delle Finanze usually disseminates, only the minister’s tweets. On the other hand, the order has arrived on the market to continue “open” operations after 8 pm, as confirmed by an operator.
The test was fundamental in clarifying the uncertainty due to the difficulties that the Treasury had had to face in order to finance itself, despite the rise in interest rates and the shortening of terms. $412 billion was owed this week out of a total of $430 billion expected in December. With this result, however, Economy managed to renew 186% of its commitmentsone of the highest levels of the year, held at the Palacio de Hacienda.
The auction aroused anticipation because most of the bonds offered were in private hands. The Finance Secretariat chaired by Eduardo Setti offered 8 securities, intended for mutual funds, brokerage firms and companies. On Monday he received bankers and importers, with whom he would finish defining the basket of instruments for this Wednesday.
The Treasury has issued an exclusive bond for importers registered with Afip and Customs, adjusted to the official dollar (dollar linked) and which expires on April 28, 2023 with partial payments in February, March and April. The innovative scheme was launched after a meeting on the fifth floor of the Treasury, where Massa agreed a plan to sell the cell phones in 10 installments at a rate of 48% with the financial sector, electronics manufacturers and retailers.
Banks were tempted by the extension to 2027 of a Badlar-rate bond that they could integrate into their reserves, while fixed-rate bills maturing at the end of the month, March and April, CER-adjusted securities maturing until April and two more bonds linked to the official dollar. However, the result surprised operators and banks, who attributed it in part to the hand of the public sector.
State agencies recently sold about $100,000 million in Treasuries to the Central Bank to buy back bonds on Wednesday, according to market sources. There was also a higher supply of pesos due to the immediate cash outflow, which totaled $118 billion in November and December, according to Juan Alra of the Southern Trust.
Although Massa stressed that he finished the year without resorting to monetary assistance, the government this week sold foreign currency (SDR) to the central bank and issued $200.229 million (nearly 0.3% of GDP) to finance the financial recession this month.
Source: Clarin
