He Ministry of Economy awarded this Friday public debt in pesos for almost $5 billion with the local capital market, consisting of banks, mutual investment funds (FCIs), insurance companies, various companies and retail investors.
Hence, the portfolio he manages Luis Caputo renewed debt maturities which amounted to approximately $1.9 trillion and the National Treasury will benefit from buy back securities from the Central Bank (BCRA) for 3 billion dollars (equivalent to 30% of the monetary base).
According to Economy, the Secretary of Financeresponsible for Pablo Quirnoreceived 1,405 bids in this tender and was awarded debt with an actual value of $4,856,437 million ($4.8 billion) with two bonds linked to the evolution of inflation until June 30, 2025 and June 30, 2026. The “zero coupon” debt is negative real rates -3.48% and -3.47%, respectively.
Similarly, $565,881 million in bids were discarded for a bill due May 20 this year because the goal is to “extend deadlines.”
“The financial fiscal balance of the National Treasury eliminates the need to take on new debt. For this reason, the financing obtained above maturities will be used to repurchase AL35 sovereign bonds in the BCRA portfolio for approximately 30% of the monetary base,” the government said, reporting a few hours later that there was a breakeven in January tax.
“This operation allows us to continue the process clean up the BCRA balance sheetthe reduction of protrusion monetary and the improvement of the financial burden of the Treasury debt”, added official sources.
Pedro Siaba SerrateHead of strategy Personal Investment Portfolio (PPI)noted, “The most surprising thing about this time is that they didn’t buy back peso bonds, but rather went out to buy back AL35, which is one of the dollar bonds that Central got after the 2020 restructuring. And then a possible reading is that the economic team could see it The Cash With Settlement (CCL) dollar has already seen strong appreciation Soon”.
Source: Clarin
