“The impact on the stock market dollars is not very clear. The Government is not going to use these bonds to lower the exchange rate because the ‘Global’ (titles) will be delisted, and the ‘Bonars’ are going to be tendered to private parties. Such If you fail to place all the ‘Bonars’ in the bidding, try to sell them against pesos, causing the exchange rate to drop -if the price in dollars is maintained-“, said Adcap Wise Capital.
In the fixed income segment, bonds traded in hard currency trade with heavy losses of up to 10% led by Global 2029, followed by Global 2038 (-7.2%), Bonar 2029 (-3.9%) and Global 2035 (-3.4%). Thus, the risk country scale 4.4% to 2,447 basis points, maximum in 4 months.
The financial dollars marked the day before historical maximum levels in their different variables due to persistent portfolio dollarizations. It is worth remembering that prior to yesterday’s announcement, the bonds closed with gains of up to almost 4%.
As reported by Economía, it will order public organizations to exchange their bonds in dollars under foreign law (global or GD) for instruments in pesos under local legislation. The total amount covers about US$4,000 million. In addition, it will proceed with the incorporation of dollar bonds under local law (bonares or AL) in the CCL dollar operation.
“The measures aim to meet three government objectives: control the exchange rate gap, obtain financing in pesos to cover the fiscal deficit and meet the issuance goal with the International Monetary Fund (IMF) -of 0.6% of the GDP of temporary advances and profit transfers-“, reported the clearing and settlement agent Cohen.
Find out more- I followed the price of the blue dollar, official, CCL and MEP in Argentina
An official source told Reuters that the sale of titles would involve some 4,000 million dollars, although private analysts indicated that the transaction could exceed 28,000 million dollars according to the entities that will be forced to participate in the operation.
“Based on our numbers, between FGS (pension guarantee fund), BCRA (central bank) and Treasury they have around 26,456 million nominal dollars of ‘Bonars’ and 2,826 million nominal ‘Globales’. In addition, the rest of the public entities would own close to 3,750 additional million -almost all ‘Bonares’-“, estimated Portfolio Personal Inversiones.
“We estimate that 50.2% of the ‘Bonares’ stock is in the hands of the BCRA, so the effect of the ‘Bonares’ will be much less if only the rest of the public bodies -including the FGS-” are required to do so. added.
The Minister of Economy, Sergio Massa, met this morning with bankers to explain details of his decision. The meeting began after 9 o’clock this Tuesday in the Belgrano Hall of the Ministry of Economy.
Massa was accompanied by the secretaries of Economic Policy, Gabriel Rubinstein and of Finance, Eduardo Setti; the head of the advisory cabinet, Leonardo Madcur; the president of the Central Bank, Miguel Pesce and the head of INDEC, Marco Lavagna, among others.
Among the bankers, the presidents of Banco Macro, Jorge Brito; from Banco Santander, Alejandro Butti and from Banco Credicoop, Carlos Heller, as well as executives from banks Galicia, BBVA and heads of business chambers in the sector, along with executives from entities linked to investment funds and insurance.
S&P Merval and ADRs
The S&P Merval stock index fell 0.58%, to 227,465.09 units due to selective sales between energy and financial papers, and in keeping with the external volatility of the markets. Investors remain focused on two patterns: the continuation of the global financial crisis due to banking uncertainty and the decision of the US Federal Reserve (Fed) later regarding its interest rate policy.
Meanwhile, Argentine papers listed on Wall Street fell to 2.8% thanks to Corporación América, Banco Superville (-1.5%), Central Puerto and Pampa Energía (-1.4%). On the contrary, Telecom Argentina, Despegar (1.2%) and YPF (0.9%) operate with increases of up to 1.4%.
Source: Ambito
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