Economy Minister Sergio Massa presided over this Wednesday a meeting with representatives of banks, insurance companies and investment funds to provide details of the latest financial measures to try to ease the strain on financial dollars.
The package includes a $4 billion swapin bonds, under foreign law (global or GD) held by national public sector organizations for peso securities and the incorporation of dollar bonds under local law (bonares or AL) in the CCL dollar operation.
On behalf of the Government, in addition to Massa, the Undersecretary for Economic Policies, Gabriel Rubinstein, took part in the meeting; the head of the Councilors of the Ministry of Economy, Leonardo Madcur; the Secretary of Finance, Eduardo Setti; and the director of INDEC, Marco Lavagna.
The meeting was also attended by the director of the Central Bank, Miguel Ángel Pesce, and the president of the National Securities Commission (CNV), Sebastián Negri.
As for the bank representatives, they were Jorge Brito (Macro); Alejandro Butti (Santander); Pablo Leon (Galicia); Carlos Heller (Credicop); and Carmen Morillo (BBVA).
At the end of the meeting, the head of the Buenos Aires Stock Exchange, Adelmo Gabbi, assessed the measures positively and underlined: “There will be more supply than demand”.
Along the same lines, Vice President Allaria Ledesma, Juan Politi, remarked: “The objective is to stabilize the financial situation. I see it as positive”.
In this way, it seeks to give greater depth to the market in which the CCL dollar operates – which is currently only enabled for GD29, GD30, GD35 and the rest of the global series – and, at the same time, provide tools for the Treasury and the Central Bank to act on the financial foreign exchange market to avoid jumps in the gap.
The new regulations will enter into force with resolutions of the Central Bank, the National Securities Commission (CNV) and the National Superintendence of Social Security, which will be published in the Official Gazette.
Furthermore, the CEO of Balanz, Julio Merlini, was present at the meeting which began around 9:00; and the director general of the Association of Argentine Banks, Francisco Grismondi, among others.
Today it is estimated that there are more than 100 government agencies with a stock of dollar-denominated bonds for a nominal value of US$ 35,000 million. In the ranking, the Central Bank and the Anses Sustainability Guarantee Fund (FGS) stand out. The idea is that the public sector exchanges its global foreign law bonds (GD) with the Treasury in exchange for peso instruments and, on the other hand, sells Bonares (AL), which the companies use to acquire CCL.
For the global bonuses it receives from public entities, it will disburse bonuses to be defined: link dollars or in pesos adjusted by CER. It will be for the equivalent of US$4,000 million.
At the Palacio de Hacienda they believe the decision to delist the global it will reduce the external dollar debt and improve its value. Massa repurchased $520m – mainly from GD30 – to hold finance dollars, but its price fell 12% in March and the IMF called last week for these operations to be halted with reserves. It would also abort the repo credit, while apparently not impeding the new plan.
Source: Clarin
