The resolution comes after the Ministry of Economy completed a debt swap operation in pesos aimed exclusively at banks that agreed to cancel the Central Bank’s guarantees on public securities.
Within the framework of the Treasury bond exchange carried out by the Central Bankan extension of the bonds offered to financial institutions. This process also includes the exit of the famous puts by the banks. Thus, the Ministry of Finance and Treasury decided to increase the amount of bonds offered to financial institutions, as well as a debt conversion operation. On Thursday, The response from financial institutions was lukewarm, with only 26% participation, according to the report of the portfolio headed by Luis Caputo.
These bonds, originally issued through previous resolutions, had amounts lower than those stipulated in the current extension. In this way, the new provision allows banks place a greater amount of weights in these instrumentsThis measure is part of a broader effort to complete the transfer of liabilities from the Central Bank to the National Treasury and to resolve the problem of the puts that represented a latent debt for the BCRA.
It should be remembered that, according to private estimates, as of today A remnant of American puts of around $3.1 trillion remains in force that the holding banks decided to retain in their possession and, therefore, did not agree to cancel them in the operation carried out by the monetary authority.
The detail of the rule
The Joint Resolution 44/2024 It then authorizes an increase in the issuance of certain Treasury bonds; a debt conversion operation and a bidding process to be carried out to determine which entities will participate in this conversion and in what quantity.
This resolution is key to the process because it has direct implications for the management of the country’s public debt. By allowing the conversion of certain securities, the Government seeks to restructure part of its debt, possibly to improve its maturity profile and, in general, improve the sustainability of its fiscal situation.
Bond Conversion
- BONCER TX25: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on December 15, 2026. The technical value of the old bond was $9,279.7320 for each original nominal value (VNO) of $1,000, while the new title will have a price of $1,307.51 for each VNO of $1,000.
- BONCER TZXD5: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on December 15, 2026. The technical value of the old bond is $1,575.2000 for each VNO of $1,000, while the new bond will be priced at $1,381.03 for each VNO of $1,000.
- BONCER TZXM6: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on December 15, 2026. The technical value of the old bond is $1,266.8000 for each VNO of $1,000, while the new bond will be priced at $1,438.05 for each VNO of $1,000.
- BONCER TZX26: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on December 15, 2027. The technical value of the old bond is $2,130.7000 for each VNO of $1,000, while the new bond will have a price of $1,380.01 for each VNO of $1,000.
- BONCER TZXM7: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on December 15, 2027. The technical value of the old bond is $1,181.7000 for each VNO of $1,000, while the new bond will be priced at $1,476.25 for each VNO of $1,000.
- BONCER T3X5: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on June 30, 2025. The technical value of the old bond is $4,463.9727 for each VNO of $1,000, while the new bond will be priced at $1,669.98 for each VNO of $1,000.
- BONCER T4X4: will be converted into a zero-coupon National Treasury Bond in pesos with CER adjustment maturing on December 15, 2025. The technical value of the old bond is $5,321.5326 for each VNO of $1,000, while the new bond will be priced at $1,360.04 for each VNO of $1,000.
- BONCER T2X5: will become a capitalizable National Treasury Bill in pesos maturing on March 31, 2025. The technical value of the old bond is $5,362.8196 for each VNO of $1,000, while the new bill will have a price of $1,156.20 for each VNO of $1,000.
Conversion Details:
The conversion process involves the exchange of old bonds and bills for new instruments with different maturity and adjustment characteristics.
This will be the conversion of several National Treasury bonds and bills into new debt instruments, including the technical values and prices relevant to each one.
The conversion operation will be carried out through a tender for adhesion, in which financial institutions can submit bids only for eligible securities.
News in development.-
Source: Ambito
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