Martín Guzmán got fewer pesos to cover the deficit and the yellow lights went on

Yesterday, the Ministry of Economy placed Treasury bills and bonds on the domestic market in exchange for taking the peso for a total cash value of $ 156.74 billion, official sources reported. This is a lower number than the $ 170,000 million that should be obtained as a Finance minimum.

In this way, the Treasury accumulated positive net financing of $ 56,588 million in the month, indicating a monthly refinancing rate of 106%. A second round will take place next Monday.

In May, a total maturity of $ 920,020 million was addressed, making up the most demanding month so far in 2022.

So far this year, Guzmán has raised about $ 700,000 million in the market. And the accumulated financial deficit, according to estimates by consulting firm Eco Go, will amount to $ 794,000 million. This means that Martín Guzmán funded a large part of the financial surplus with debt and to a lesser extent the financial issue as requested by the IMF.

As specified by the Argentine Ministry of Economy in a statement, in operation this Friday were seven titles with maturities in 2022, 2023, 2024 and 2025. 64% of the amount awarded was in CER-adjustable instruments, 30% in instruments at a fixed rate and, the remaining 6%, on instruments at a variable rate.

“It’s a bad placement,” said Eco Go consultancy. This week approximately $ 170,000 million is due. According to the calculations of the consulting firm Guzmán, he not only had to raise that amount to pay off the obligations, but also an additional 30% due to the growing financial deficit. In other words, it should reach approximately $ 230,000 million. It only raised $ 156 billion. Guzmán’s lower lending appetite means 64% of debt is tied to inflation.

This Friday was the second of two tenders scheduled by the Ministry of Economy for May, as a continuation of the domestic market utilization strategy launched in 2020 and ratified in the extended facility program sealed in the Monetary Fund. International (IMF)), last March.

The purpose of these auctions is to obtain financing to deal with the successive maturities of Treasury debt and, in addition, to capture the liquidity of the Argentine pesos and thus decompress the demand for the purchase of dollars. investors for hedging purposes.

In agreement with the IMF, Argentina began to gradually limit and reduce assistance to the Treasury of the Central Bank, so the search for financing in the domestic market became more fundamental.