He Next Tuesday the Ministry of Economy will have a litmus test before the market when you have to go out and look for funding to at least renew debt for something less than $1.5 billion. The bidding will take place just 48 hours after the libertarian Javier Milei was elected as the new president.
Given the context prior to the runoff, in The menu of instruments offered included a wide range trying to contemplate the different options. The government has to at least renew the expiration of a Lecer for $1.3 billion. Then it could aspire to achieve positive net funding to address the deficit in public accounts, although that will depend on the market mood after the presidential runoff.
On this occasion, the Treasury has left aside the Lelites, which were exclusive for the Common Investment Funds and very short term.
Within the program Market Makers, an Inflation Adjustable Bill (LECER) will be made available maturing on February 20, which could be the most in-demand bond. In this case, market makers will be able to access an extra 30% in the second round on Wednesday.
On the other hand, there will be a Linked Dollar bonus on April 3, a Boncer on May 20, a Dual bonus on June 30, a Boncer on October 14, a Dual on January 31, 2025, a Boncer on February 2025, another Linked Dollar as of March 31, 2025 and a Bonte as of August 23, 2025.
On the other hand, the first placement of a green Treasury bond will be made, called Sustainable Thematic Bond adjustable by inflation. They are instruments whose funds will be applied exclusively to finance or refinance social or sustainable economy projects.
In the market it is pointed out that With the confirmation that Milei will be the next president of Argentina, everything will now depend on the first signals he gives about the very short-term course of the economy. Some anticipate a surge in coverage instruments, based on the distrust generated by the new tenant of the Casa Rosada in terms of his ability to implement policies.
What helps for Tuesday’s financial climate is that the current Minister of Economy, Sergio Massa has already offered to establish coordination mechanisms between teams to speed up an orderly transition.
Prior to this result, when there was talk of the mere possibility that Milei could become president, the dollar skyrocketed and the market took cover, so that The expectation will be on bonds tied to the dollar and duals.
Argentina’s financial situation is very complicated. According to the Romano Group brokerage company, In 2024, the Treasury’s debt in local currency amounts to $32.7 billion pesos. “The largest maturities are given by the debt that adjusts for CER $19.4 billion, followed by the Dual debt $13.3 billion,” he specified. Dual debt is one that adjusts for both inflation and the dollar, depending on the most beneficial result for the investor.
Source: Ambito
