With the extraordinary call last Friday he got 55%. Maturities in dollars pose a challenge to the Government. It is about US$1.600 million.
As is said in soccer regarding the goals that are scored in the first minutes of the game, the Government took to the field winning from the locker room. In September he has to face debt maturities in national currency for a little over $835,600 million, of which already has more than half insured with the “surprise” tender that took place last Friday. Although the amounts to be renewed seem challenging, especially in a context of financial and exchange crisis, it is precisely because that complicated scenario that opened doors for the Ministry of Finance to go out in search of pesos. The demand for hedging in the secondary markets against inflation and a potential new devaluation in October have become an opportunity to satisfy this requirement from operators.
Government was able to award $464,014 million, which is equivalent to almost 70% of the maturities of the next tender on September 14 (about $660,000 million). Then for the second call of the 27 has to go for another $175 billion. It means that they are already insured. almost 55% of the total. It is obvious that for both calls you will obtain sufficient funds to renew and that you will also be able to obtain a new record rollover rate, if so arranged.
Year-to-date net funding reached $3.4 trillion after Friday, implying a 148% renewal rate. That is approximately what the Ministry of Economy needs to maintain now until the end of the year if it wants to face the primary deficit without resorting to transitory advances from the Central Bank, as it negotiated with the International Monetary Fund (IMF).
Among market operators, it is thought that the off-schedule tender with which Secretary Eduardo Setti started the month was intended to cover the increased spending that the plan announced by Sergio Massa is supposed to demand. to offset the effects of the post-election devaluation of August 14, estimated at 0.4% of GDP. Neverthelessin the Ministry of Economy, they assure everything was due to the fact that there is a demand for coverage in the market as reflected in the secondary markets and that for this reason, the context was used. None of the reasons are exclusive, it could be assured. As officially reported, almost all of the bids awarded on Friday corresponded to the private sector, with a broad base of investors by sector, highlighting mutual fund managers, the corporate sector, insurance companies and banks.
On the other hand, although the agreement with the IMF was announced in the background, For the spring day, next September 21, the Government will have to face a new due date before the organization led by Kristalina Georgieva for some US$921 million, according to a report by the Congressional Budget Office (OPC). Also throughout the month it will have to pay some US$500 million with various organizations and another US$200 million from multilaterals.
Source: Ambito
