He Central Bank of Uruguay (BCU) and the Ministry of Economy and Finance (MEF) This week they will place three domestic public debt securities with different maturities, for almost 15.8 million pesos.
The first title in pesos will be tendered this Monday at 2 p.m., for a total of 7.5 billion pesos (about 188 thousand dollars), with integration that same day and with a deadline of 35 days. Of the total, 1,500 million pesos will be non-competitive placements, according to the anticipated schedule by BCU.
Meanwhile, on Wednesday, also at 2 p.m., there will be another award for 4,500 million pesos (about 113 thousand dollars), which will be integrated the next day, with a term of 91 days and an amount of 900 million pesos of unsecured placements. competitive.
Finally, on Friday at 2 p.m. the week will close with the bidding of a title for 3,800 million pesos (about 95 thousand dollars), with a term of 182 days and integration that same day and an amount of 760 million pesos considered non-placements. competitive.
Public debt grew in the first half
According to a report from the Catholic University of Uruguay (UCU) public debt grew. According to the UCU survey, the gross debt as well as the net (assets) grew when compared to December. The gross amount reached 68.5% of GDP in June, compared to 67.2% at the end of the year, while the debt without public sector assets stood at 49.8% of GDP, compared to 48.2% December 2022.
The survey specified that “after reaching minimum levels in 2013, the debt rose continuously as a proportion of GDP until 2019,” something it attributed to “fiscal reasons,” while specifying that this situation worsened “especially in 2020 due to the impact of the health crisis on public finances and economic activity.”
The UCU highlighted that in 2021 there was a reduction in the public debt in relation to GDP and in 2022 it rose again. However, looking to the future, he anticipated that “the deterioration recorded in the first half of the year would be corrected in the second half.” In this way, the total net debt of the State would return to around 48% of GDP.
Regarding this own estimate, the economist Javier de Haedo, author of the UCU report, considered a fiscal deficit of 3.8% of the GDP and expectations about CPI and the exchange rate from the latest BCU survey among analysts, noting that “they are relevant data for the purposes of determining the effect of changes in exchange parities on the debt.”
At the same time, he recalled that “the real appreciation of the national currency tends to ‘inflate’ both the numerator and denominator of the relationship between debt and GDP, when expressed in terms of dollars” and analyzed: “If figures expressed In dollars, as of June 30, the total gross debt of the public sector reached 51,705 million while the net debt (with the aforementioned definition) reached 37,611 million dollars.
Source: Ambito
