With a debt auction underway that includes a variety of instruments both in pesos and linked to the dollar, the team led by Luis Caputo will have to precisely manage market expectations while seeking to stabilize the economy.
The treasure faces the first debt tender of the second half of the year. With some $13.3 billion of passive passes yet to be absorbed, equivalent to approximately US$14.5 billion at the official exchange rate. The economic team could give indications on Wednesday about the pace at which it will implement phase two of its stabilization program.
To do this, it needs to complete the migration of the remaining remunerated debt of the Central Bank (BCRA) to Treasury securities and go out to offer new Lecaps and dollar linked instrumentssomething that draws attention, as it occurs in the midst of the rise in parallel dollars.
The Finance Secretary has launched a call for tenders for a combination of instruments of the National Treasuredetailed below:
- a. National Treasury Bill Capitalizable in Pesos maturing on August 16, 2024 (S16G4 – reopening).
- b. National Treasury Bill Capitalizable in Pesos maturing on September 13, 2024 (S13S4 – reopening).
- c. National Treasury Bill Capitalizable in Pesos maturing on October 14, 2024 (S14O4 – reopening).
- d. National Treasury Bill Capitalizable in Pesos maturing on January 17, 2025 (S17E5 – new).
- and. US Dollar-Linked Treasury Bond Zero Coupon due December 15, 2025 (TZVD5 – reopening).
- F. US Dollar-Linked Treasury Bond Zero Coupon due June 30, 2026 (TZV26 – reopening).
- g. US Dollar-Linked Treasury Bond Zero Coupon due June 30, 2027 (TZV27 – new).
The acceptance of bids for all instruments will begin at 10:00 a.m. and end at 3:00 p.m. on Wednesday, July 10, 2024.
The market is not only expecting indications about the pace of implementation of phase two of the stabilization program, with the migration of Central Bank (BCRA) debt to Treasury securities, but also possible signals about the resolution of another challenge pointed out by Javier Milei: the repurchase agreements, or puts, held by banks, which is considered a necessary condition to get out of the exchange rate trap.
In non-competitive sections, Only the amounts of VNO to be subscribed must be recorded, and they will be intended for natural or legal persons without the necessary specialization to evaluate the financial conditions of the tender..
The official call recalls that the tender will be carried out in accordance with the procedures approved by Joint Resolution No. 9/2019 of the Ministry of Finance and the Ministry of the Treasury. Full details of the instruments and additional tender data are available at www.argentina.gob.ar/economia.
Source: Ambito
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