This was anticipated by the Secretary of Finance, Pablo Quirno, on social networks. It will use part of the pesos that the Treasury has deposited in the Central Bank. It seeks to promote the reduction of country risk.
The Government sent a new wink to bondholders. He announced tonight that will begin the process of purchasing from the Central Bank the dollars necessary to guarantee creditors the payment of January capital maturities. Thus, it seeks to boost the rise in sovereign bonds and the fall in country risk.
The information was disseminated by the Secretary of Finance, Pablo Quirno, through his account on the social network purchase from the BCRA of US$2,701 million to meet the payment in dollars and euros corresponding to the capital amortization of the Globales and Bonares bonds maturing in January 2025″.
Debt: details of the announced operation
Quirno pointed out that the purchase of currencies will be carried out with “part of the Treasury pesos deposited in the BCRAcorresponding to the net financing achieved as of September 2024, which as of October 27 amounted to $13.26 billion.”
In addition, the official added: “This transaction ensures the payment of principal and interest in January 2025 and will contract the amount of pesos by $2.67 billion“. The reverse side will be a impact on net reserveswhich continue in negative territory.
Wink to the bondholders
The truth is that the Government’s message is a new wink to the bondholders. He had already made one, when he announced and then completed the sending to New York of the dollars with which he will pay the interest coupon on that same date. corresponding to the debt restructured in 2020.
Now, more than two months, it will complete the guarantees by purchasing the currencies to comply with the capital amortization of the titles that expire next January. Thus, officials decided not to wait for the announcement of a repo-type loan with international banks like the one they have been negotiating for several weeks now. In total, next January’s maturities are close to US$4.8 billion.
The ad reinforces the official message: the priority is first from pesos (via adjustment and primary surplus) and then from dollars (even with negative net reserves) to strictly comply with the payment of the debt.
This way, The Government seeks to feed back the upward trend of dollar bonds and, therefore, the reduction in country risk (which this Tuesday closed at 933 basis points) with the objective of regaining access to international markets in the medium term. Although Luis Caputo assures that he does not plan to do so in the short term, it is clear that lowering the risk premium is one of the objectives in the face of the very large external debt maturities in the coming years.
Source: Ambito
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