This was expressed in Joint Resolution 28/2024 of the Ministry of Economy, Secretariat of Finance and Treasury. The securities received for the operation being implemented will be removed from the public debt records.
Following last week’s tender, the Treasury bought from the Central Bank (BCRA) AL35 bonds originally issued through article 2 of law 27,556, with the adjustments provided by article 4 of decree 676 of August 15, 2020 for a nominal value of $1,329,051,677. The operation will be settled on May 20, 2024.
This is how it was expressed in the Joint Resolution 28/2024 of the Ministry of Economy, Secretariat of Finance and Treasury. The securities received for the operation being implemented will be removed from the public debt records. The measure is framed in the decision of the Ministry of clean up the Central Bank and provide greater liquidity to the Treasury to clear up doubts about maturities. This action had already been anticipated in the official statement from the Economy after the results of the tender.
Mega placement of Economy: it captured $11.7 billion from the market and will use net funding to reduce the monetary base
Last week, the Ministry of Economyled by Luis Caputo, captured $11.7 billion from the market, comfortably renewed maturities of around $3 billion, and announced that it will use net funding to reduce the monetary base.
The Ministry of Finance announced that it received offers for $18 billion. It was through the bidding of four new Lecaps (with maturities from June to August), three zero-coupon Boncers and one zero-coupon dollar linked bond.
The novelty on this occasion it was that three of the Lecaps had a minimum monthly effective rate (TEM)located above the new TEM of the BCRA monetary policy rate (3.3%).
Within the framework of the strategy to reduce monetary emission via rotation of Passes to Treasury Bills, Economía announced that The surplus from the maturities of this tender ($8.63 trillion) will be used to reduce the broad monetary base through the following mechanisms:
- Treasury account in the BCRA for $7.63 billion, constituting an additional liquidity cushion to the $4 billion already existing.
- Purchase of Treasury securities in the BCRA portfolio for the equivalent of $1 billion, allowing the Treasury’s interest burden to be reduced and continuing to reduce and clean up the BCRA’s balance sheet.
- A total of Lecaps were issued at a fixed rate for an amount of $10 billion. The three bills with the minimum rate came out at the same rate and the bill maturing on 8/30/24 at a TEM of 3.8%.
- $1.1 billion of CER TZXM5, TZXM6 and TZXM7 bonds were awarded; at TNAs of -13%, -0.4% and 1.8% respectively.
- $0.53 trillion of linked TZV25 dollar bonds were placed at a TNA of -3%.
Source: Ambito
