The Ministry of Economy announced that it will proceed to make a repurchase offer of the National Treasury debt in the hands of the Central Bank, for an effective value of $1,350,000 million.
This week, the Ministry of Economy achieved a successful placement of inflation-linked bonds (CER) for a total of $1.35 billion, in a long-term strategy. With these funds, a new buyback of Treasury securities in the hands of the Central Bank was activated, as announced by the Ministry of Finance. The tender, held last Tuesday, generated offers that exceeded 2.3 billion pesos, just over $1.3 billion being validated at a slightly negative rate.
It should be remembered that the offer included three options tied to CER with maturities in June 2026, June 2027 and June 2028. The majority demand was concentrated in the bond as of June 2026, with more than 2 trillion pesos, of which the Ministry awarded 1.2 billion. In the case of the June 2027 bond, the offer was $305,000 million and the effective placement was $145,000 million, while the June 2028 bond was declared void.
The strategy to reduce the debt stock
Consequently, the Ministry of Economy announced that it will proceed to make a repurchase offer of the National Treasury debt in the hands of the Central Bank, for an effective value of $1,350,000 million. The title to be repurchased is the “National Treasury Bond in pesos adjusted by CER 4.25% maturing on December 13, 2024” (S5X4).
Thus, the Ministry of Finance will seek to carry out a second repurchase of Treasury bonds held by the BCRA, specifically the T5X4, a security linked to the CER index maturing on December 13 of this year. This initiative follows the good repurchase of TDF24 for 1.9 trillion pesos in the first tender on December 20, along with another 950,000 million of a DICP peso bond.
Thus, this Friday, February 2, through the Official Gazette with the Joint Resolution 9/2024 of the Ministry of Economy, The Ministry of Finance and the Ministry of Finance, The Central Bank’s strategy of acquiring National Treasury bonds was ratifiedas in the case of “T5X4 Bonuswhich seeks to reduce public debt and strengthen the financial management of the State.
The transaction will be carried out at a price of $292 for each original face value of $100, and liquidation is scheduled for February 1, 2024. This measure, legally supported by article 55 of Law No. 11,672, Permanent Supplementary Budget (to 2014), seeks to improve the financial efficiency of the State and reduce the costs associated with debt financing.
In conclusion, the strategic purchase of T5X4 bonus by the BCRA reflects the proactive approach to optimize the financial management of the Argentine State sought by the Government and contributing significantly to the reduction of public debt.
Source: Ambito
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