In July the public debt stock in pesos amounted to $182,535,922 million, which represented a increase of 9.6% compared to the closing of June. On the other hand, the stock of foreign currency debt decreased by US$1.125 billion compared to the previous month, reaching a total of US$253.920 billion at the end of the month analyzed. The data belongs to the Congressional Budget Office (OPC).
Debt X-ray: the main points
According to the July report, the following occurred in the public accounts:
• Interests: The Treasury paid $212.833 billion in interest on debt in pesos and the equivalent of $1.745 billion in foreign currency, USD1.374 billion for bonares and global bonds.
• Amortizations: Capital was cancelled for $27,905,148 million and US$4,818 million. The most notable decreases were the exchange of BONCER for LEFI for $20,276,961 million, the first amortization of AL30, GD30 and GE30 for US$1,177 million and the last one of the IMF loan for the SBA for USD647 million.
• New indebtedness: The Treasury obtained financing in pesos for $36,936,018 million, of which $20,000,000 million correspond to LEFI, and in foreign currency for US$3,185 million.
• Profile: debt services for the period from August to December In local currency they are estimated at $32,273,034 million and in foreign currency at US$8,028 million, of which US$4,504 million correspond to bills to the BCRA and public agencies.
Why did the debt in pesos increase in July?
In July, the stock of performing debt payable in pesos increased by $16,000,206 million compared to the level at the end of June. At the end of the month, the capital owed by the National Government amounted to $182,535,922 million, made up of 62.8% of the outstanding debt. CER-adjustable debt in pesos, 29.9% of debt in pesos without adjustment and 7.2% denominated in US dollars but payable in pesos (USD linked and dual bonds).
According to the report, the increase in debt in pesos was due to a net debt effect plus capital valuation adjustments – due to the impact of the increase in the exchange rate on debt denominated in US dollars payable in pesos ($288,756 million) and the price index on debt in pesos adjustable by CER ($5,427,157 million) -, and the capitalization of interest on the LECAP for $1,253,423 million.
Temporary advances
As part of the Government’s plan to clean up the BCRA’s balance sheet, the Treasury has not recorded net financing by TA for another month, with the stock remaining unchanged since the close of August 2023 at $4,091,100 million.
Debt in dollars
At the end of July, the stock of debt denominated and payable in foreign currency amounted to the equivalent of US$253.92 billion, which implied a decrease of US$1.125 billion compared to the close of June.
This stock is made up of 39.2% for step-up bonds issued in the 2020 foreign currency debt restructuring process (Bonares and Globales)27.3% for non-transferable bills placed with the BCRA, 16.3% for loans from the International Monetary Fund (IMF) for the 2022 Extended Facilities Program (EFF), 14.2% for loans from other international credit organizations and 3.3% for other debts (guaranteed bills, other public securities, guarantees and loans from commercial banks).
Source: Ambito
