Debt: Economy placed a one-year fixed-rate bond and securities worth $4.4 billion

He Ministry of Economy placed five debt securities in pesos as part of its financing programin a tender in which The two offers of bonds adjusted for the variation of the dollar were declared void and an inflation-adjusted note (CER) maturing on December 15, 2017.

The distinctive note was the demand of investors for a Treasury bill maturing on August 29, 2025, which raised more than one billion pesos and pays an effective monthly rate of 3.88%.

However, the one that concentrated the most demand was the The bill was payable on November 11 of this year at a rate of 3.75% and raised more than 1.5 billion pesos in cash.

Also noteworthy was the fixed-rate Treasury Bill, at 3.90%, payable on June 30 of next year, which attracted a demand of more than 917 billion pesos.

The tender was completed with the placement of a Letter maturing on February 28, 2025, with a Annual Nominal Rate of 3.78% which raised 635.6 billion pesos, and an Inflation Adjusted Bond (CER) to be paid on December 15, 2016, with an annual nominal yield of 8.57%, which raised just over 301 billion pesos.

Investor interest was reflected in the 4,519 offers received for peso-denominated bonds and the 75 for dollar-denominated bonds, the latter of which were rejected. The total awarded exceeded 4.4 billion pesos.

The Secretary of Finance, Pablo Quirnohe said before the tender was held that “there is a debt problem when it comes to financing the State.” “Right now I have the best job. I don’t have to finance the State. I don’t have to take on new debt,” he added,

“The debt problem is when the numbers are not in order, that is, the macro is not in order, and you have to resort to things like breaching contracts,” Quirno explained during a presentation at the business school of the Universidad Austral.