The debt director of the Ministry of Economy and Finance announced that it could be in pesos, Indexed Units or dollars.
From the Ministry of Economy and Finance (MEF) reported that they are willing to issue sovereign debt in global bonds this year, amid a good time for the Uruguay in relation to the good credit rating received by Moody’s Ratings.
The director of the Debt Management Unit, Herman Kamil, had advanced at the beginning of this year the possibility of issuing global bonds in pesos at a fixed rate and in Indexed Units (UI). As well as the probable reopening of the Bond Indexed to Climate Change Indicators (BIICC) ,and the possibility of a new Samurai bonus in Japan.
In relation to this, the leader assured in an interview with El Observador that the ministry has “an open menu internationally, it can be pesos, UI either USD”.
Meanwhile, Personal Sherpa – led by economist Rodrigo Saráchaga – questioned whether it would not be a good time to issue a new global bond in Indexed Units since since 2020 one has not been issued. On the other hand, they recalled that there is a lack of long-term references since currently the most distant is 2040.
A favorable scenario
This possibility is amidst good credit ratings from one of the most important agencies in the world: Moody’s Ratings. The same, improved the investment grade rating of Uruguay in mid-March, highlighting the development of “structural reforms,” along with continued compliance with the fiscal and monetary policy.
In this way, it improved the long-term issuer ratings and the senior unsecured bonds of the government of Uruguay and changed the outlook from “positive” to “stable.”
Among the arguments to define the improvement, the rating agency highlighted “the solid institutions that support the implementation of structural reforms and the continuous compliance with the fiscal and monetary policy frameworks”, which it praised for aiming “at rates of growth sustained higher than in the past, supported by strong investment”.
At the same time, he highlighted the set of reforms implemented in recent years by noting that they “strengthen the fiscal and monetary policy frameworks.” Looking ahead, Moody’s warned that “a trend of investment stronger will support growth performance, facilitating fiscal consolidation and stabilizing debt of Uruguay in the next years”.
In turn, the agency pointed out that the rating Baa1 “is supported by fiscal reserves and comparatively large external buffers and very strong asset and liability management practices.”
Source: Ambito
