The debt could be exchanged for instruments maturing between 2025 and 2028, part of the Government’s new push to reduce the risk of its debt in the midst of a broad economic crisis.
The Ministry of Economy, in charge of Luis Caputoseeks to extend maturities and decompress the 2024 curve. It should be noted that the majority of these eligible debt securities are in public institutions and a low percentage in private hands.
Thus, at the beginning of the second week of March, a debt swap for an estimated amount of between US$54,000 million And till US$64,000 million equivalents, aimed at instruments maturing in 2024. The analyst Salvador Vitelli estimated that the total exchange will be for eligible securities totaling $54.5 billion, the main ones being: CER: $26.4 billion – Dollar linked: $5.2 billion and Dual $22.8 billion.
This process will materialize through a call for bids published by the portfolio headed by Caputo, with the objective of freeing interest payments and maintaining the financial deficit at zero levels.
In the month of January, the Government highlighted having achieved positive results in both the primary and financial results. However, according to data from the Congressional Budget Office (CBO) for February, Despite a rigorous fiscal adjustment, a financial deficit was again recorded. Despite this situation, the Government maintains the statement that both results will be positive.
Instruments
Thus, this Monday, an exchange process will be carried out for the conversion of eligible securities for a diversified basket of public debt instruments of the national state.. This process will cover the Badlar fixed rate National Treasury bonds, as well as the inflation-adjustable bonds (CER), official dollar (linked dollar) and dual currency, all with maturities scheduled for this year.
The operation, called by the Ministry of Finance, will take place between Monday, March 11 and Tuesday, March 12. It will be open to both the public sector (FGS, BCRA, ANSES, BNA, etc.) and the private sector (entities in the financial and non-financial sector, as well as natural and legal persons). The reception of offers will begin at 10:00 a.m. this day and will end at 3:00 p.m. on Tuesday the 12th. Settlement of offers received and awarded is scheduled for Friday, March 15, 2024.
As part of its objectives, the Ministry of Economy will seek to postpone as many public debt maturities as possible in the local capital market. These new terms will be distributed to cover 30% of the total as of December 15, 2025, another 30% as of December 15, 2026, 25% as of December 15, 2027 and the remaining 15% as of December 15, 2028.
Source: Ambito
