He Central Bank of the Argentine Republic (BCRA) announced that it will offer banks and financial institutions the possibility of rescinding liquidity options on government securities in order to resolve the “puts” they hold.
Reception of termination offers will begin at 11 a.m. and end at 4 p.m. each day, and settlement will take place on Thursday, July 18.
“The termination will be carried out through the ‘RPTP’ wheel of the Siopel system and agents will only be able to upload positions for their own portfolio,” indicates communication “B” 12847 of the entity that directs Santiago Bausilli.
The price at which each contract will be terminated recognizes the holders of the “puts” a value equivalent to the premium in pesos agreed upon at the appropriate time, “proportional to the number of days remaining until the end of each contract, and increased according to the variation of the CER index from the date it was paid until the date of settlement of the termination.”
On their social networks, Ariel SbdarCEO of Cocos Capital, explained the monetary entity’s offer to the banks. “The BCRA tells the banks that it will very kindly buy back these insurance policies at a price equivalent to the premium they paid at the time, adjusted for the inflation index.”
“It is very likely that this has already been 100% settled with many or all of the banks and that we will see the entities handing over the insurance to the Central Bank again. This condition is very important and necessary to be able to continue on the path to opening up the exchange restrictions,” added the economist.
In addition, the entity that directs Santiago Bausilli reported that one of the conditions for the termination of the deferred liquidity options will be to do so “simultaneously” with all of the non-deferred liquidity options.
“Banks are called upon to terminate PUTs. The premium is adjusted based on CER, proportional to the remaining days of the contract. They will not be able to terminate European PUTs without first terminating all American PUTs,” he said in his “X” account. Salvador Vitelliby Romano Group.
Source: Ambito
