“In July 2024, Two provinces placed bonds on the market for a total of $116.935 million,” said the consultancy Politikon Chaco. In a report, it highlights that the amount placed is 40% lower than the previous month and 62.3% lower in the year-on-year comparison.
Buenos Aires was the district that made the largest placement with a total of $92.930 million, representing 79% of the total. The instruments were:
- Treasury Bills Tranche 7 at 63 days (LB3S4) for $22,019 million (at discount).
- Treasury Bills Tranche 7 at 91 days (LBO24) for $11,865 million (at a discount).
- Expansion of Treasury Bills Tranche 6 at 211 days (XBE25) for $59,046 million.
On the other hand, Chaco awarded a total of $24,005 million (21% of the month) in the following instruments:
- Class 19 Treasury Bills at 35 days (BL3G4) for $17,962 million (annual nominal fixed rate of 46.25%).
- Class 20 Treasury Bills at 63 days (BLS24) for $3,043 million (fixed annual nominal rate of 52.0%).
- Class 21 Treasury Bills at 126 days (BL4N4) for $3 billion (fixed annual nominal rate of 59.5%).
Payment of provincial debt
On the other hand, despite the fact that the provinces are facing a sharp drop in their own resources as well as those of national origin, in July they paid their debts normally. According to Politikon Chaco, in the seventh month of 2024, provinces and CABA faced deadlines for a total of $276,316 million, between bonds in pesos and dollars.
This is a volume that, in constant currency, It was 1.4% higher than what was operated in the same month of 2023 but 39% lower than in June.
“In this month of analysis, 79% of the month’s maturities correspond to bills, while the remaining 21% were bonds,” says the consulting firm that runs the economist Alejandro Pegoraro.
The report indicates that 82% of payments were in pesos (for $226,336 million, which includes maturities settled in dollars but cancelled in pesos), while 18% of the maturities were in foreign currency (for US$54 million).
What were the maturities in local currency?
Main maturities that were cancelled in pesos were: the province of Buenos Aires paid $187.532 million; Chubut, $31.142 million; Chaco, $28.213 million; Cordoba, $10.289 million; Neuquen, $7.208 million; Rio Negro, $5.914 million; Tierra del Fuego, $3.876 million; La Rioja. $1.801 million and Misiones. $342 million.
Which provinces paid dollars?
Chubut
- PUL26 Bond: issued in 2016 under foreign legislation and restructured in December 2020. In July 2024, it paid the 32nd income service and 16th capital amortization service for a final total of US$33,429,511.
Cordova
- CO26 Bond: issued in 2016 under local legislation. In July 2024, the 31st rent service and 23rd capital amortization service were paid for a final total of US$11,044,922.
Land of Fire
- TFU27 Bond: issued in 2017 under foreign legislation and restructured in January 2024. In July 2024, the 29th income tax service was paid for a final total of US$2,192,750.
Thus, The total actually paid in foreign currency during July was US$53,698,120 and the weight of dollar maturities on the total was 18%, the second lowest level of the year (only above May).
Source: Ambito
