He Government plans to issue two dollar debt bonds for a total of US$1.2 billion. It would be titles with World Bank guarantee and the Development Bank of Latin America.
As it was revealed, in the environment of the minister they would be studying this measure with the aim of applying it In the next weeks. The information came from a ministry source commanded by Sergio Massa in dialogue with a Reuters.
The measure would aim at strengthen the international reserves of the Central Bank within the framework of an exchange market in tension due to the blows caused by the drought, the shortage of dollars that this generates and the consequent complications when importing and paying debts, whether public or private.
The securities will be 60% backed by these entities. The fact that the bonds have guarantee of the organisms opens the possibility of obtaining lower interest rate than Argentina would get in the voluntary credit markets.
Argentine sovereign bonds they lost a large part of their value due to the different situations of cessation of payment. Thanks to this loss of value, the Government had activated the repurchase of part of the securities in dollars under foreign law. Argentina’s dollar bonds currently yield between 22% and 42% in the debt market.
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Mass in the United States
While this measure is being evaluated, the Minister of Economy is found in USAwhere this Saturday he met with the Deputy Managing Director of the IMF, Gita Gopinath. As it was learned, after the meeting, the Argentine economic team will begin to work with the staff of the international organization in a new modification of the current agreement with the Fund to strengthen the framework economic policy and adapt it to new situation of the country.
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Ministry of Economy
Also, on his tour, Massa also announced the 42% increase in Progresar scholarships starting this month, a measure that could be taken thanks to a agreement with the World Bankfor disbursement of US$300 million. He also succeeded in carrying out the first investment for Argentina of the Saudi Fund for Development (SFD) for $500 million.
Source: Ambito
