Another of the points indicated in the report by the Debt Management Unit is the liquidity from the government: at the end of January, the figure reached 1,874 million dollars, while financing through multilateral institutions amounted to 1,515 million dollars.
The pillars for the 2023 debt strategy
The report also establishes the guidelines that the government will follow during this year regarding its debt strategy. In this sense, one of the main pillars will be the increase in funding in local currency in local and international markets, while developing secondary markets.
Based on this, the MEF announced the debt issuance schedule, in which the offering of Treasury bonds at a nominal fixed rate for a base amount equivalent to 500 million dollars during the first semester stands out. The objective is to increase the share of public sector debt in local currency, for which the conversion of loans in dollars will also be sought.
Another fundamental point for the government this year will be to keep the refinancing risk through proactive liability management operations, precautionary liquidity holding and contingent credit lines. For this, the MEF has been carrying out exchange and repurchase operations of short-term public securities to extend maturities.
Finally, the third pillar of the debt strategy is to continue aligning the sovereign financing strategies with the achievement of environmental objectives.
The results of 2022
2022 ended with a total gross indebtedness of 4,564 million dollars, of which close to 87% (almost 4,000 million dollars) was obtained in the local and international bond markets, in the short, medium and long-term tranches. The remaining amount (571 million dollars) was obtained through the disbursement of loans with multilateral organizations.
Likewise, of the total financing in bonds, 62% was obtained in the domestic market and denominated in local currency, while the rest was obtained in the international bond market in dollars. An important milestone was the issuance of the first Bond Indexed to Climate Change Indicators (BIICC) of Uruguay.
The gross needs of the Central government in 2022 they totaled 5,140 million dollars.