AnSes defends bond swap in which it will deliver dollars and receive pesos and says retirees won’t lose

For NSAs, the exchange or sale of dollar bonds held by the Sustainability Guarantee Fund (FGS) for a special dual bond, in inflation-adjusted pesos (CERs) or dollar-linked pesos, of both greater, protects the Fund from a possible sharp devaluation or even higher inflation, according to sources Clarín of the organization that manages pensions and pensions and is led by the camporista Fernanda Ravera.

The bonds that the FGS has to sell on the market – which will happen gradually – or to the Treasury have a nominal value of US$ 13,500 million, but its market value – less than 30% and declining – is around 4,000 million dollars.

In exchange for these bonds, the Treasury will issue a special bond that ANSeS and other public entities They will receive their technical value, with a discount of approximately 40%, but will be accounted for at 100%.

Accordingly, the bonus will yield a total of 8% pa on purchase value, plus adjusting for inflation and exchange rate.

ANSeS says this exchange reduces the volatility of the FGS and could also have a profit equivalent to about $2,000 million. because although he sold the bonds at a low price, in return he would receive a bond in pesos that was also at a lower price.

Even if they don’t admit it, there is behind this “game”. the fear of a major currency crisis this further depresses the dollar value of the bonds which, at the time, were purchased when trading below 20%.

Instead, in that scenario, the dual bond would be protected both if the value of the dollar rises and if inflation spirals.

According to ANSeS through a DNU, the FGS will exit government bonds denominated and payable in dollars, get new funds and a new Treasury bill.

The bond acquired will be long-term and DUAL, protecting the Fund from both inflation and possible devaluations. This bond is safer and much less prone to defaults and restructurings, as it is payable in pesos and within the public sector. At the same time, this will help make the FGS portfolio more stable over time.

The FGS will buy the bonds at 60% of their book value, making an immediate profit. The operation will involve the availability of funds (about 400 billion dollars) which will be used to stimulate production by financing productive projects and SMEs.