The measure seeks to get banks to accept the offer to repurchase the puts, which remains open until this afternoon. As the entities will lose liquidity by being left with unsecured public securities, the BCRA will start lending them cheaper pesos.
In the midst of the second round of trading that the Central Bank opened to buy back the puts they have in their possession from the banks, the monetary authority made a decision that seeks to convince financial institutions to get rid of these guarantees on public securities. The BCRA decided to lower the interest rate at which banks can borrow money for very short periods.
This is the rate for active repos, which was reduced from 60% to 48% nominally on Thursday. In addition, the BCRA will once again offer active repos for seven days. Until now, despite the fact that they had not been in demand for some time, it only offered active repos for one day.
By lowering the cost of this instrument, which has been practically unused in recent years, Santiago Bausili is now proposing to banks to compensate for the loss of liquidity that those who agree to sell their puts will experience by keeping Treasury bonds in their portfolios, which will no longer be covered by insurance that can be executed overnight.
Note in development
Source: Ambito
