He Central Bank of Uruguay (BCU) This week, it will place three domestic public debt securities with different maturities, for 14.2 million pesos between Monday and Friday.
The first bidding of the week will begin this Monday the 6th at 2:00 p.m., the first title in pesos will be bid for 5,000 million pesos (almost 130.9 million dollars) with a term 28 days, with an expiration date of Monday, June 3 of the current year. In that total, 1,500 million pesos (almost 39.27 million dollars) will be non-competitive placements and will have their integration date on the same day.
On Wednesday the 8th at 2:00 p.m., a title in pesos will be awarded for 5,000 million pesos (a total of 130.9 million dollars) with a term of 98 days, and an expiration date of August 14 of this year. anus. He himself will have the integration date The same day. This tender will have 1,000 million pesos (26.18 million dollars) of non-competitive placements.
Finally, on Friday the 10th at 2:00 p.m., the last title in pesos of the week will be auctioned, for others 4.2 billion pesos (almost 109.96 million dollars) with a term of 175 days, and an expiration date of November 1 of this year. Of the total, 840 million pesos (almost 21.99 million dollars) will be non-competitive placements. Meanwhile, the integration date will be the same day.
Fitch alerted Uruguay about the need to stabilize the debt
The risk rating agency Fitch Ratings posted a warning for Uruguay regarding the status of your public debt in relation to the Gross Domestic Product (GDP); and he pointed out that although the tax rule is helping to improve the country’s fiscal credibility, it still needs to work on reducing debt.
The Uruguayan debt has been one of the alarm points for national economic development indicated by different international organizations and institutions, such as, even, the International Monetary Fund (IMF). In that sense, Fitch called to work with greater intensity to reduce the deficit, even despite the recent good results at the macroeconomic level that resulted in the improvement of the country’s credit rating by Moody’s.
“The fiscal rule of Uruguay is helping to improve fiscal credibility, but it has yet to anchor consolidation enough to fully stabilize debt/GDP, the US agency said in a statement published on its website. Only in this way, he insists, would he support a greater improvement than the one he received from the rating agency in June of last year—when it gave him the rating BBB with stable outlook.
“The government returned to compliance with its fiscal rule introduced in 2020, including the associated spending limit, the net borrowing limit and the structural balance target. This was due in part to an escape clause in the debt limit invoked for the drought and a prior review of the structural balance objective,” the publication considered, highlighting the consequent greater credibility of the fiscal rule and the progress made with respect to a greater accountability and countercyclical policy; aspects supported, furthermore, by the social security reform.
However, he warned Fitch, “the norm has only provided a moderate consolidation” of the deficit; and noted that the government’s calculations regarding a greater improvement in the structural balance maintain “some uncertainty.” “For example, a negative output gap is assumed to be constraining income below its potential, but this is not guaranteed, and the outperformance of income in recent years (reflected in a 0.9 percentage point increase) of GDP since 2019) could mean that greater cyclical advantages will occur as incomes decline,” the agency considered.
Source: Ambito
