As mentioned in the official rule, the bonds will be removed from the public debt records. This contributes to reducing the Government’s debt stock.
Through Joint Resolution 32/2024 of the Ministry of Economy and the Ministry of Finance, published this Friday in the Official bulletina financial operation was authorized related to the purchase of securities by the Government in US dollars, known as “Bonds of the Argentine Republic in US dollars at 1% 2029” (AL29).
The resolution authorizes the purchase of these bonds from the Central Bank (BCRA) at a price determined for each original face value of the bonds.
According to the official text, the operation is carried out within the framework of the powers granted by article 55 of Law No. 11,672, which allows the Ministry of Finance and the Ministry of Finance to carry out liability management operations, including the restructuring of public debt, purchase and sale of financial instruments, among other common financial transactions in derivatives markets.
Likewise, the resolution details the nominal value of the bonds to be acquired, the price for each nominal value, and the settlement date of the operation. It also establishes the authorization so that different entities can sign the necessary documentation to carry out the operation.
Resolution Objective
The main objective of the resolution, according to the slogan, is the purchase of the “Bonds of the Argentine Republic in US dollars at 1% 2029” (AL29) by the BCRA. These bonds were originally issued in 2017 and mature in 2029.
Operation details
- Bonus amount: the operation involves the purchase of an original nominal value of US$801,302,896 in AL29 bonds.
- Price: the purchase price is set at $68,960 for each US$100 of original face value.
Consequences of the operation
As mentioned in the official standard, the bonds purchased by the BCRA will be removed from public debt records. This results in the reduction of debt, since the purchase of bonds by the BCRA contributes to reducing the government’s public debt.
Source: Ambito
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