Martin Guzman and Miguel Pesce.
The Ministry of Economy reported that on Wednesday it reduced existing maturities for the end of the month by $ 358,000 million through a stock conversion operation, so that on Thursday, June 30, the National Treasury the amount to be dealt with that day will be $ 248,000 million.
143 offers were received in the conversion operation: 97 corresponded to the letter LEDE S30J2 for a total nominal value of 128,196 million dollars and 46 to the Lecer X30J2 for a total of another 145,775 million dollars, both expiring next Thursday.
The Treasury offered two baskets of instruments composed of different combinations of Discount Letters (Ledes) and adjustable by CER (Lecer) in conversion from the LEDE S30J2 and the Lecer X30J2. The expiry of these new instruments will be between October and December.
Next Thursday, June 30, the National Treasury faced maturities of $ 605,886 million, which after this operation managed to reduce the expected maturities to $ 248,000 million.
The next auction will take place on Tuesday.
At the market it is estimated that Wednesday’s exchange rate was made “to measure” by the Central Bank, by the Anses FGS and by the provincial banks. Next week it will be the turn of individuals. Martín Guzmán will seek to have the remaining 248,000 million dollars he will have to face in the maturities to be lent to him by the banks.
“The swap is designed for Lecers and LEDs expiring in June that the Central Bank (BCRA) has purchased in recent days”, explain the sources.
The monetary entity has allocated nearly $ 300,000 million to purchase inflation-linked bonds and end the decline of these key Treasury funding instruments.
Why does Guzmán do this? On the one hand, with the exchange of securities in the hands of the BCRA, he avoids requesting more transitory advances from the institution (to which he has agreed with the International Monetary Fund.
On the other hand, the BCRA, by buying the bonds, raises prices and lowers rates, helping Guzmán – who doesn’t have that much pressure to offer a higher rate – ahead of next week’s auction.
The cost of the transfer is paid from the balance of the Central Bank, with more Treasury securities in the assets and more Leliq in the liabilities.
Source: Clarin
