Economy faces the first debt tender after the Buenos Aires electoral test

He Ministry of Economy You will have the challenge of renewing debt in pesos for more than $ 16 billion, in the hands of deprived throughout September, in a context marked by the Electoral climate in the province of Buenos Aires.

According to the schedule of the Secretariat of Finance, This Monday will be announced the bonds that will be offered in the tender, which will be on Wednesday, while the settlement will be Friday.

In that framework, In September the treasure has to renew in total $ 16.3 billion that are in private hands, of which about $ 9 billion will concentrate on the first call of the month, and the rest in the second.

Thus, when the menu of bonds and letters that will use the Treasury to remove liquidity is communicated, The result of the elections of the province of Buenos Aires will have already been known, what can influence the level of interest rates that banks will ask for to refinance the government.

According to the president Javier Milei would be a “technical draw” in the territory that governs Axel Kicillof, between Peronism and Libertarians, What can be interpreted as a speech prepared to explain a defeat by a few points. If so, the political situation would not change much of what has been observed in the provincial elections.

But If the ruling party had a triumph for a few points, the interpretation of the “technical draw” would be very differentin the same way as for the market, which could discount an important triumph of the libertarians in October.

So far, it’s about simple speculations that are made among the City operatorswho assume that after the election period the government will apply a reset to the economic program.

It should be remembered that from the moment the economic authorities decided to eliminate Lefis, as instruments to handle the daily liquidity of the banks, the interest rate went from 29% TNA, to a maximum of 55% in the case of the shortest Lecaps.

Called after call, the government You have had to pay a little more rate to be able to get pesos of circulation. Changes in lace standards have been introduced so that the letters of more than 60 days offered by the Treasury can be used, the so -called Tamar, which pay the wholesale rate of the fixed period of the system.

On the last call, Treasury validated an annual effective 86% rate in Tamar letters. Although it is a variable rate – and in practice the treasure will not pay that full level -, it constitutes a appetite thermometer and the distrust of the financial system. ”

The BCRA questioned banks about lack of collaboration

At the meeting of the Argentine Institute of Finance Executives (IAEF) in Bariloche, the vice president of the Central Bank, Vladimir Werning, He launched harsh criticism against banks and He pointed them directly, suggesting that they acted against the economic program.

He explained that a month before the changes, banks were asked to reduce their positions in Lefis and be going on to Lecaps. However, at the time of implementation, they not only did not reduce their holdings, but increased them.

Werning said at the annual meeting of finance managers of the most important companies in the country that the BCRA is working on new standards to generate a “secondary liquidity market”, where entities can concur to operate daily or intradiary, but without the intervention of the BCRA.