Two months after the court ruling, Government Initiates Payment Of Nearly $100,000 Million In Refund Of Joint Funds which the Supreme Court returned to the Municipality. With a resolution, the Ministry of the Economy has made operational the transfer of Treasury bills to a Banco Nación account and the calculation of their value since the issue of the bonds last December, the price of which is not known.
These are the TX31 bonds, which mature in 9 years (30 December 2031) and are adjusted for inflation (CER index) with a rate 2.5% higher than the evolution of prices. Despite providing this hedge in a scenario of near 100% year-over-year inflation, investors are fleeing this type of paper because it is very long term. “There’s no price for that, they’re not traded on an exchange, nobody sells them,” said one trader.
The joint provision of the Ministry of Finance and the Treasury, chaired by Eduardo Setti and Raúl Rigo, establishes “the extension of the issue of the “National Treasury Bonds in Pesos adjusted by CER 2.50% Maturity 30/11/2031″, issued originally through 7 of joint resolution 40 of 17 October 2022 of the Ministry of Finance and the Ministry of Finance, both of the Ministry of the Economy”.
According to this Monday’s resolution, the transaction is “for an amount up to the original nominal value of sixty-five thousand three hundred and eighty-two million six hundred and seventy-nine thousand one hundred and seventy-nine pesos (VNO $65,382,679,179), equal to ninety-eight thousand five hundred million pesos ($98,500,000,000), calculated at the technical value at effective date of Administrative Decision 1282/2022 equal to one thousand five hundred and six point five thousand one hundred and two cents ($1,506.5152) pesos, for each original face value of one thousand pesos (VNO $1,000).”
In this way, the government has moved forward along a road that was rejected by the head of government of Buenos Aires, Horacio Rodríguez Larreta, when in December he assured that the payment “must be made directly and daily with what is called daily drip distributed by the co-participation and must do so in pesos.” And, at the beginning of February, was added the statement of the opposition pointing at the “bomb” of the public debt in pesos.
The bonds in question were accepted by the Court when the State last year ordered the payment to the province of Santa Fe of the debt that had arisen after the ruling that declared unconstitutional the deduction of 15% of the mass of the co-paying taxes that it was carrying out the national state to finance the ANSES. This was the official argument for using them again with CABA.
The payment was announced on Monday 26 December by President Alberto Fernández, after the supreme court ordered the return of the funds it had stolen from the Municipality to be allocated to Axel Kicillof of the Province. At first, the president rejected the judicial decision and announced that he would “reject the members of the court,” but the next day he backed down and ordered payment with bonds.
What was missing is the procedure approved this Monday to calculate the value of the securities and return them. There, Economy is expected to request the Central Bank to transfer the TX31 to an account in the name of the Treasury at Banco Nación (BNA), from which the daily payments to the City will be made, and will notify the institution of the nominal value of the securities on the basis of the information published by the BCRA from 26 December.
This is the increase in the CER from the date of issue to the present plus accrued interest.
According to the resolution, Banco Nación will calculate the difference between the application of the 2.95% index on a daily basis. of the mass of funds ordered by the Court (until the resolution of the question of merit) and of the 1.4% that “historically” was transferred to the Municipality and to determine the nominal value of the securities equal to the amount in pesos of the previous calculation to apply the technical value communicated by Finance on the working day preceding the calculation date.
In the event that the Municipality fails to open the account, Banco Nación will proceed with the opening of a transitional account for judicial deposits. And the days pending for the transfer at the time of entry into force of the joint resolution will be regularized by applying the previously indicated calculation criteria for each day.
NS
Source: Clarin
