Government confirms that it is negotiating a REPO with banks

Government confirms that it is negotiating a REPO with banks

October 6, 2024 – 21:33

The figure would be around US$3 billion, as confirmed by official sources to Ámbito. The rate would be lower than what it would cost to refinance the bonds in the market.

It is estimated that next year The dollar needs to pay off debt will be around US$20 billiontaking into account the public and private sectors.

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The Government negotiates with a group of banks a REPO to strengthen the reserves of the Central Bank, as confirmed by official sources to Scope. The figure would be around US$3,000 million.

According to what this medium was able to know, the negotiation is aimed at obtaining a lower rate than what it would cost to refinance the bonds in the market. “As the rate today is very high, we are doing this REPO financing so that the rate is lower. It helps us guarantee the January capital payment,” they said from the Government.

“The only thing we have to guarantee are the interests. We already have the repo prepared for next year, in case we want to go to the market and we can’t manage to ‘roll’, we have the REPO to cover. That is, we pay whatever.”President Javier stated weeks ago, after a week of instability in the markets and rise in country risk.

Debt maturity profile for the period 2024-2025

It is estimated that next year The dollar needs to pay off debt will be around US$20 billiontaking into account the public and private sectors. Meanwhile, The maturities of government bonds (principal and interest) total more than US$7.2 billion, according to a survey by the consulting firm EcoGo, based on data from the Central Bank of the Argentine Republic (BCRA).

Weeks ago, the Secretary of Finance, Pablo Quirnohad also assured that the economic team worked to be able to refinance maturities in dollars of next year.

We do not ‘wait’ for the country’s risk to decrease. We work without buts to make it happen (and to strengthen the reserves as well,” said the official in charge of public debt administration.

Source: Ambito

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