The Congressional Budget Office (CBO) has a detailed report of the expirations of the Temporary Advances. In principle, the first commitment is in October with an equivalent of US$2,005 million. The second key date is in November with another US$862 million and the closing in December, for US$4,047 million.
The agreement signed with the FMI established a maximum of Temporary Advances from the BCRA to the Treasury equivalent to 1% of GDP by 2022, a goal that has been met until now, but already almost at the limit. Massa can renew that stock or reduce it, but he no longer has room to increase it.
so far this year, the Central Bank transferred some $950,000 million to the National Treasury as Temporary Advancesalthough the Treasury returned $322,449 million with part of the Special Drawing Rights (SDR) granted by the IMF.
Last weekend, Massa announced that I would be returning this week to the monetary entity some $10,000 million in advance. It is more than anything a gesture by the new minister to mark the direction he intends to give to the finances of the public sector.
debt swap
Along with it, this Tuesday Massa will launch a debt swap by which it will try to postpone maturities for the equivalent of US$15,000 million in the next three months.
Given the strong mistrust that persisted between banks and mutual funds, which are the main investors in Government securities in pesos, the Treasury had to dispose of a bond with what in jargon is called “sweetener”, that is, something more than the interest rate. Thus, a Dual Bond will be issued that adjusts its yields for inflation (CER) or for the evolution of the official dollar (linked dollar), whichever has risen more at the time of payment.
In the last tender for bills, the Treasury validated effective annual rates of 90% and in the case of bills tied to the dollar, 2.5 points more than the normal rate were paid.
In this way, banks, mutual funds and investors who enter the operation voluntarily now will be covered until September of next year against an escape from inflation or a potential devaluation of the official exchange rate.
Source: Ambito
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