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Tuesday, March 28, 2023

banks crossed JxC economists who warned about the risks

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The president of ADEBA, Javier Bolzico, defended the initiative after what were the accusations of the former Minister of Finance, Hernán Lacunza, who maintained the same position as the economists Guido Sandleris and Luciano Laspina, on it.

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Lacunza published on his Twitter account that “the Government is preparing a debt swap with the banks” and that he interprets it as “a vile and ruinous operation for the State”.

Given this, Bolzico remarked that “the proposed debt swap is for titles (not for holder).” In addition, he pointed out that “the banks have a smaller percentage of the total debt. Therefore, to say that it is ‘with the banks’ is -at least- fallacious.”

“A Put is an option to sell an asset at a predetermined fixed price,” added the president of ADEBA.

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“Until today, the Central Bank never bought bonds at a price other than market. It is a conceptual error to call the liquidity option of selling bonds to the Central Bank a Put”he added.

“The exchange insurance has nothing to do with the currency in which a title is paid. Dual titles can be considered, in certain scenarios, a debt in dollars. Most of the Argentine debt is denominated in dollars,” he closed. .

The Government is in the midst of preparing a debt swap in pesos that could cover a basket of eligible titles for some $7.5 trillion.

A series of meetings will take place this Monday between officials of the Ministry of Economy headed by Sergio Massa with banks, insurers and mutual investment funds (FCI).

The objective will be to reach agreements in which these sectors are committed to entering into the operation, a way of clearing the horizon given the significant number of maturities that are coming up until the end of the year.

Source: Ambito

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