The Government advances in the process of adjusting the BCRA balance.
He Ministry of Economy resolves to buy from the Central Bank (BCRA) the “National Treasury Bond in Pesos adjusted by CER expiring December 13, 2024” (T5X4) for original face value of around $273 billion (specifically $273,437,500,000) at a price of $320 for each original face value of $100. The operation will be settled this Thursday, January 18, 2024.
The Government provided, in Joint Resolution 6/2024 of the Secretariats of Treasury and Finance, which was published this Friday in the Official Gazette and which authorizes the operation by the Economy, that the titles received will be removed from the records of public debt.
This occurs after the Ministry of Economy captured almost $4 billion of the market in the first debt tender in pesos of the year. Part of the funds are allocated to this repurchase of securities from the Central, What will it do in addition to covering the around $3 billion of expirations that occur this week.
According to the economist Pablo Ferrrari, this measure, “the first thing that is noticed is the systematic look at the BCRA’s accounting, seeking a cleaner Central for the ‘independence’ of the same that the Monetary Fund (IMF) demands”. And he defines this decision to repurchase CER bonds as “a handrail that Abba Lerner would laugh at in his ‘Functional Finances’, which focused on the public sector consolidated and not in this or that area of the same”.
Debt buyback: a path that the Treasury has already started
Let us remember that, in December 2023, The Treasury purchased the discount and dual bonds “DICP” and “TDF24” from the BCRA for a value of $2,930 million. It did this with the money raised in the December tenders in a context in which the BCRA did not have sufficient reserves in US dollars to pay the maturities of these bonds in February 2024. This is a debt that the Treasury had with the BCRA and the objective of the measure was to advance the process of cleaning up the monetary regulator’s balance sheet.
News in development.-
Source: Ambito
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