One more time The Ministry of Economy will appeal to the collaboration of the banks to be able to pass debt maturities beyond August, a key moment for the markets because the candidates for the next presidential elections are defined there, and along with this, the scenario is clarified for investors in local currency. Preciselythis Monday the Ministry of Finance will put on the table nine financial instruments of which there are three that are already fully included in the next administration. These are two bonds that expire in April and September 2024 and a title that does the same in June 2025. With this type of placement, the Government has managed to stretch the maturity horizon from an average three and a half months to eight and a half , something that seemed very difficult three months ago.
Within the framework of the second tender of the month $447,000 million mature. If they are covered (in the market this is expected to happen), the Government will already have overcome the most complicated stretch of the year in terms of commitments in local currency. The heaviest maturities in the hands of private holders have occurred thus far. As of June, the participation of the State agencies themselves takes center stage and, therefore, in the Palacio de Hacienda it is expected to be able to refinance what remains without major problems.
In the menu of instruments that are not part of the Market Makers program, Economy offers two dollar-linked bonds, as of April 30, 2024 and as of September 30, 2024, and an adjustable Bonus per CER (BONCER tied to inflation) as of June 18, 2025. The latter offers the possibility to financial entities of constitute lace of deposits and for this reason they are in high demand, although their performance may be lower than other options.
On the other hand, a Letter of Liquidity will be made available to the Common Investment Funds (FCI). (LELITE) to June 16 that comes out with a 142% effective annual rate. The rest of the instruments will determine the rate in the tender.
Among the instruments that make up the Market Makers Program (they have a second round of placement on Tuesday for up to 30% more than what was placed in the first round), Treasury Bonds adjustable by CER (BONCER) will be offered as of August 13, three Bills adjustable by CER (LECER) to August 13, September 18 and November 23 and a Letter linked to the dollar (LELINK) to October 31, always this year.
As in the first call, a week ago, the Ministry of Finance (headed by Eduardo Setti) is not offering discounted Treasury Bills (LEDES). This financial instrument is trading in secondary markets at effective rates of 150% and is seen as a reference for the Central Bank’s monetary policy runner.
Although the market is confident that the Government will be in a position to obtain at least $90,000 million above maturities (120% net), it is also true that there is a strong participation of State agencies in these calls.
The Central Bank buys the holdings from these agencies and provides them with liquidity, which they use to buy new Treasury bonds. The consultant eco goled by economist Marina Dal Poggetto, argues that So far this year, private companies have withdrawn some $500,000 million of exposure to the public sector. In the previous May call, in which $580,000 million expired and a net of $770,000 million was achieved, the consultant estimates that $116,000 million went private. It also estimates that the participation of private parties that are not banks in the tenders does not exceed 45%. Another consultancy, 1816, estimates that the total net financing of the government up to now ($930,000 million) was provided indirectly by state agencies, which in turn were financed by the Central Bank.