Three dollar bills mature: one maturing on January 7, 2034, another maturing on January 7, 2031, and another maturing on January 8, 2034. With this extension, 60% of the interest on these bills is cancelled.
Through Joint Resolution 37/2024 of the Ministry of Economy, Ministry of Finance and Ministry of Treasury, Published this Monday in the Official Gazette, the extension of a Non-transferable Treasury bill in dollars to be delivered to the Central Bank.
The official text mentions several laws and decrees that establish the legal frameworks and procedures to follow to carry out this extension. It establishes that on July 8, the first interest coupon of the Dollar bill maturing on January 7, 2034, of the seventh interest coupon of the Dollar bill maturing on January 7, 2031 and the first interest coupon of the Treasury bill in dollars dated January 8, 2034. Therefore, this extension is to cancel 60% of the interest services on those bills.
In short, it is expanded the issuance of the Treasury Bill in dollars with maturity on April 3, 2029for US$63,998,727 originally issued through article 1 of joint resolution 20 of April 3, 2024 of the Ministry of Finance and the Ministry of the Treasury, and is delivered to the Central Bank, accruing interest from the date of its placement.
The regulations also authorizes the relevant authorities to sign the necessary documentation to carry out the operation described. Finally, it is established that the measure will enter into force from the date of its issuance.
Economy secured June debt payments
Last week, the Government awarded in the Treasury tender US$8.4 billion to cover maturities of US$5.7 billion. The almost US$3 billion surplus in the auction will pay the maturities of the Bonares and Globales in July.
The news quickly made Sovereign bonds rose by up to 1.5% as was the case with the Global 2035 and the Bonar AL35D, which cut their principal and interest coupons on July 9. The country risk fell slightly by 11 units (-0.7%) to 1,429 basis points, because the rest of the bonds did not follow the same pace of increase as those maturing in July. For example, the AL30D, one of the most representative, rose 0.41% and the Global 2030D, which has foreign law, 0.96%.
Source: Ambito
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