The operation contemplates the delivery of bonds that adjust to dollar value, 20% and due to inflation, the remaining 80%, to which is added an exit mechanism for investors who will be at the head of the Central Bank, that it will repurchase the new titles in case the holders want to sell.
Walter Morales, CEO of Wise Capital, told Noticias Argentinas that the proposal for the debt swap being launched by the Government “is fine”, given the accumulation of maturities that exist this year prior to the elections.
“It is the same exchange that they have been doing every three months, to which they are changing the format,” said Morales, who warned that the market, until now, has only been lending to the government in the short term.
When the new operation became known, economic leaders of Junto por el Cambio came out to question itarguing that the organic charter of the BCRA is violated and that the purchase operation called Put will generate more inflation in the future
In this regard, the financial analyst christian buteler supported the swap: “This government is a disaster, its fiscal policy has been the worst and financing in such a short term is irresponsible. From there, promoting everything to explode to obtain a political profit regardless of the consequences on society is total irresponsibility and baseness,” he said.
Bueteler said that “regardless of who governs, what must be done is to prevent the crisis from breaking out and not to encourage it to happen.”
“They criticize the debt, and that’s fine. But don’t forget that during his tenure I could tender debt with pesos that they paid with dollar bills,” said Buteler, who maintained that “they also ended up defaulting on the debt in dollars, the debt in pesos and placing a stocks 72 hours later”.
“What is expected of whoever may be a government, regardless of political color, is that they come to try to solve things and not to make things worse or cause them to explode. Nor is it asked to solve everything in 3 months but to start the path to recovery,” he explained.
Source: Ambito
