BOPREAL: what is the instrument that everyone talks about and how it works

He Bond for the Reconstruction of a Free Argentina(BOPREAL) is the financial tool that the Central Bank of the Argentine Republic (BCRA) will launch next week for importers, which seeks to regularize the debt that the entity has with this sector and in this way reactivate international trade.

At the same time, the new automatic import authorization scheme will be implemented that will replace the SIRAs implemented by the outgoing administration.

Companies will now be able to agree with their suppliers on the Payment in 4 installments of 25% each.

The stock of debt with importers amounts to US$60,000 million and in exchange the Central Bank will allow the subscription of the Bond for the Reconstruction of a Free Argentina (BOPREAL).

This title will be denominated in dollars, will have an annual rate of 5% and may be subscribed in pesos. These bonds will be issued for between 1 and 5 years.

The Government’s intention is that this bond will then be marketed in the secondary market at a value very similar to par and act as an exchange rate equalizer. But since financial sectors have already raised alarm and controversy over the issue.

BOPREAL: how it works

The details were revealed by the ANP agency based on a statement from the Argentine Federation of the Graphic and Related Industries (FAIGA), whose owner Juan Carlos Saccolast week he held a meeting with the new Secretary of Commerce, Pablo Lavignewhere the system was explained.

The company that buys the BOPREAL You will also be able to apply it to pay taxes, if your supplier does not accept the title and wants to charge in dollars.

In order to access the BOPREAL Companies have to certify their debt before the AFIP and hence it is speculated that the majority of commitments are intra-company, with parent companies. In that case, it is most likely that large firms will be sought to buy the 5-year bonds.

In fact, there are private studies that indicate that 90% of the commercial debt abroad is between related firms, so that in the context of a new government, it is likely that this group of large companies will risk trusting in success. from Javier Milei and agree to postpone the collection of their dollars until later.

Bopreal: fifth tender

As anticipated Ambit, The Central Bank (BCRA) will carry out, between today and tomorrow, the fifth auction of Series 1 of the Bopreal. It should be noted that in the last tender, held last week, the Central managed to award all of the offers received, reaching a nominal value of US$340 million.

However, this result could not maintain the high interest that the bond had generated in the previous auction, where securities for an amount equivalent to US$1,179 million were placed.marking the most successful wheel to date.

The offering of these securities began four weeks ago, with the first tender attracting 34 offers for a nominal value of US$68 million, representing 9% of the total offered. In the second operation, the BCRA awarded all of the offers received for a nominal value of US$57 million, equivalent to 7.6% of the auctioned amount.

The third round generated notable interest, reflected in the US$1,179 million finally awarded, consolidating itself as the most successful auction up to that point. In this context, the moderate amount of US$340 million reached in the last tender did not align with the forecasts of market analysts, who anticipated a considerably higher figure. So the expectation is focused on this latest tender.