In this way, the issue of the “Non-transferable National Treasury Note in US Dollars maturing on April 3, 2029” is extended.” for an amount of up to US$63,998,727.
According to what was published in the official text, the objectives of the issue are to cancel 60% of the interest services on the Non-transferable National Treasury Bills in US Dollars maturing on July 8, 202 and replace such payments with new public securities with the following characteristics:
- Term: 5 years.
- Amortization: full at maturity.
Interest rate
Equal to the interest rate of the BCRA’s international reserves for the same period.
Maximum: SOFR TERM rate at one (1) year plus 0.71513% less one (1) percentage point.
The issue of the “Non-transferable National Treasury Bill in US Dollars maturing on April 3, 2029” is extended for an amount of up to US$63,998,727.
The new titles will be delivered to the Central Bank of the Argentine Republic (BCRA).
Finally, the official text highlights that the heads of certain offices of the Ministry of Economy are authorized to sign the documentation necessary for the implementation of the operation.
Analysts consulted by Ambit They indicated that the idea of new bills issued by the Treasury, but guaranteed by the BCRAis to “hide” the creation of money generated by the interest on these securities. Since the yield is capitalized at the end of the bond term, accountingly it does not impact the accounts of the Public Sector. It increases the debt, but not the interest, so does not affect the fiscal surplus.
But economists like Roberto Cachanosky They argue that in the end, If the Treasury were unable to meet future debt maturities In pesos, the final result would be the same: the Central Bank will have to issue to assist the government.
It is even noted that if the money from the Regulatory Letters is from the Treasury, then in the future, in the event of a change of government, it is likely that those pesos will be used to finance the fiscal deficit.
Source: Ambito
