Each of the amounts is expandable with the focus on obtaining net financing. The monetary goal is one of the three mandatory guidelines, along with the Central Bank and fiscal reserves, that the international organization takes into account in each review to approve the agreed disbursements. The program with the IMF forces the Government to obtain financing in the local market for 2% of GDP this year to reduce the monetary issue to less than 1% of GDP, for which the Treasury tenders are essential.
Along these lines, Lucio Garay Méndez, an economist at LCG, considered that “the Treasury has a relatively challenging tender ahead of it.” “It has principal maturities for COP 144,000 million, mostly in a Lecer, and interest payments for just over COP 4,000 million. However, it also has an objective of obtaining an extra $80,000 million per tender on average to finance the primary deficit, after having renounced the use of Temporary Advances. The amount is relatively low, so Finance should have no problems in tomorrow’s tender”, he nuanced.
Regarding the instruments, Garay Méndez added “unlike the previous placement where he placed a post-PASO instrument, this time the longest term is May, so the roll is within the management”.
For his part, Matías de Luca, an economist at LCG, argued that in this auction “the difficulty is not high.” He recalled that two days before the end of September, the Treasury obtained $330,000 million in financing in the last auction and that “this value almost entirely covers the $340,000 that are due for the Treasury during October.” Also, he stated: “The menu that it offers for its next tender includes bills adjustable by CER, which represent two thirds of the total to be tendered and are more attractive in a scenario of high inflation. However, the challenge moves to 2023, where an average of $1.5 trillion per month is due and each payment is equivalent to 1% of GDP.
Source: Ambito
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