In the session reserved for entities that are part of the Market Makers group, the preference was in the LEDE maturing on October 31, that pays a fixed rate. Of the total awarded, these they took $15,062 million and the rest were inflation-indexed bills.
Thus, the Ministry of Finance managed to raise the refinancing rate to 122% in relation to the maturities of the first half of July, which reached $621,000 million.
With this, it was confirmed thate interest in fixed-rate bills grew in the market, given the slowdown in inflation June, which marked 6%. The market expects inflation to stabilize at 7% per month for at least the next three months, according to the prices of the titles, when measuring the differences in rates between papers indexed by CER and the LEDE.
The price that the Government is paying to de-index a part of the debt in pesos is 140% effective per year. In the first call of the month, slightly more than 26% of the total placed corresponded to LEDES and 11% to LELITES that expire at the end of July, which took the Common Investment Funds (FCI).
gross debt
Meanwhile, the Ministry of Finance reported that the Gross debt stock reached in June the equivalent of US$403,809 millionsof which 36% is in local currency and the remaining 64% is in foreign currency.
The official report indicates that since the beginning of the year the gross debt has grown the equivalent of u$s7,254 million since as of December 31, 2022 it was $396,555 million.
This year, the exchanges and issues of securities generated a new debt for US$134,541 million and US$117,422 million were amortized, exchanged or cancelled, for which the net stock grew by US$17,119 million . After them, due to technical valuation adjustments, the value of the debt (excluding what was not submitted to the exchange) is reduced by US$9,852 million, in addition to other valuation adjustments.
If the Treasury gross debt component is broken down, some US$123,536 million, 31%, corresponds to letters and titles, and temporary advances from the Central Bank in the semester total US$16,173 million, the 4%. Meanwhile, bonds in foreign currency total US$180,829 million, which represents 45%. With Official External Creditors (organizations and governments) they are US$76,127 million, 19%.
“76% of the gross debt in a normal payment situation corresponds to Titles and Bills of the National Treasury, 19% to obligations with Official External Creditors1, 4% corresponds to Transitory Advances 2 and the remaining 1% to other instruments”, indicates the official report.
If there is something that explains the growth of public debt, it is the issuance in pesos. The report indicates that “during the last 12 months, the stock of gross debt in a situation of normal payment increased by the equivalent of u$s25,270 million, due to the increase in debt in foreign currency for US$2,179 million and the increase in debt in local currency for an amount equivalent to US$23,091 million”.
Source: Ambito
