In August, it managed to significantly increase the rate of rollover of maturities, closing with 204%.
In the Ministry of Economy they breathe easier. In the second part of the year they are managing to renew the government’s credit to private investors. The expiration wall that was talked about at the beginning of 2023 has already been passed by 2024 and 2025. Something positive in the context of the financial and exchange crisis that Argentina is going through It is that the Executive already obtained extra financing between January and August to attend the fiscal deficit of $2.96 trillion.
In the month that is about to end, he was able to obtain an extraordinary roll over level of 204%which is one of the highest since the Treasury began to carry out tenders for bills. This month he managed to “raise” just over $861,000 million net.
In the last tender on Friday, it had to face maturities of about $100,000 million and was able to place $822,000 million to those who $36,000 million were added in the second round of the entities of the group of Market Makers.
The consultancy Ecolatina points out that the level of roll over of the Government experienced a “notable improvement” this month. In June it was 150% and in July 120%, while the accumulated figure is now 141% in the first eight months. The private report says that “the counterpart of the increase in financing was again a greater use of instruments indexed to inflation.”
It happens that the announcement of the Ministry of Economy that it will keep the official exchange rate stable until October, after the Central Bank applied a 20% devaluation, awoke the Mutual Funds appetite for hedging in inflation-linked instruments or interest rates. Above all, a CER-adjustable Bill that matures in November had been showing high demand in the markets in the previous days.
The result of the two auctions in August is good news for Massa, who is in Washington trying to get the IMF executive director, Kristalina Georgieva, to release the outstanding US$7.5 billion for Argentina. It is assumed that until the end of the year the Treasury should stop receiving monetary assistance from the Central Bank to cover its needs. And therefore, you will have to look for those resources in local currency in the capital market. For it should maintain a high debt renewal rate in the following months in a context of electoral exchange rate uncertainty.
According to estimates from the Congressional Budget Office (OPC), in September the Palacio de Hacienda has to face commitments for just over $872,000 million. The maturity of a LECER for $680,000 on the 18th of that month and a Dual Bond for $175,000 million, on the 29th, stand out.
Source: Ambito
