After that, the objective of the government faces the need to refinance about $ 9 billion this week. This Monday, it will announce the offer of letters and bonds for the placement of Wednesday.
In the prelude to the Wednesday debt tender, in which the government faced total maturities for around $ 13.7 billion, The Ministry of Economy will carry out a Settlement of titles with the Central Bank at market prices for about $ 5 billion to anticipate the renewal of a part of the weekly commitments.
The operation, published In the Official Gazette, provides that the national treasure give the monetary authority a LECAP expiring on December 15 and that The BCRA falls apart from its holdings in the LECAP that expires this Friday.
With this, the Ministry of Finance seeks to “clean” the scenario for the next call, where now the goal would be to renew About $ 9 billion that are in private hands, as indicated. These types of conversion operations are usually carried out in the previous days in which there are important maturities with high bond possession of the BCRA.
The Treasury prepares a key debt tender
During this Monday the Secretary of Finance, Pablo Quirno, will announce the bond menu that the government will offer to contain the weights that, if not refinant, would return to the market. In that sense, the Treasury Palace gave clear signs that it is arranged to take the necessary measures to prevent money from without destiny.
That at the expense of a High volatility of interest rates. As the Argentine Political Economy Center (CEPA) explained in his last report, the banks have trouble managing their liquidity. This causes that, given transitory excesses, the rates are lowered until the moment in which a tender of the government is carried out and pay very high yields to contain the weights.
Therefore, It will be important to see the rollover level of Wednesday’s placement. In the previous call, the percentage of refinancing was 61% that led economics to carry out a complementary tender out of the program and the BCRA to announce a change in bank lace standards, which forced the entity to accept the bonds offered in the emergency tender.
Last Thursday, The government re -modified lace rules after a bank claim, which consisted of a change in the way to count the gross and net position of the caution and passive and active passes. It will be seen in the next call if this has any impact on the provision of financial entities to renew the credit to Treasury.
Source: Ambito
