The head of the Treasury Palace gave an interview to the British newspaper Financial Times, the same day that the magazine LatinFinance distinguished him as “Finance Minister of the Year.” At that meeting, he admitted that The agreement with the IMF will remain for next yearafter the new US government takes office in January. Next November 5, the Republicans will face each other donald trump and the democrat Kamala Harris in the presidential elections.
The dialogue was carried out within the framework of the publication of a special edition entitled “Invest in Argentina”which included the interview with Caputo. There the minister specified that most of Argentina’s debt obligations due in 2025 expire in January and June, with almost US$5 billion in interest and principal payments to bondholders in both months.
For January, Caputo says that the Government has already deposited cash in the Bank of New York to pay interest and has reached an almost three-year repurchase agreement with the banks to pay the capital. “In June, interest rates permitting, we will refinance the principal and pay the interest using our primary surplus,” he said. Caputo. And explained that “If the conditions are not met, we will make payments in another way.”
REPO and debt in international markets, Luis Caputo’s objectives to cover maturities
Argentina will face next January expirations of debt with bondholders US$4.8 billion, according to the estimate made by the Congressional Budget Office (CPO). Of that amount, some US$1.7 billion correspond to interests and were deposited in advance by the Treasury in the Bank of New York.
The loans negotiated by Caputo they are about credits known as REPO (repurchase agreement) in which they could be put as guarantee the Bonds for the Reconstruction of a Free Argentina (Bopreal) issued by the BCRA. Its duration would be almost three years, Caputo told the Financial Times.
In that sense, the head of the Treasury Palace recognized that expects to return to voluntary debt markets in June to obtain the necessary funds to refinance July capital maturities and pay interest with fiscal surplus. But The condition he set is that “interest rates allow it”so a substantial reduction in the Country Risk in the coming months. Others also expire in June US$4.8 billion, according to the OPC.
Argentina obtained financing for US$8.8 billion from the World Bank and the IDB
On the other hand, tonight Economía announced that the World Bank and the Inter-American Development Bank will disburse u$s8,800 million to Argentina. The announcement came in the middle of the Economy Minister’s tour, Luis Caputo, by USA.
“In the framework of the trip of the Minister of Economy, Luis Caputo, to the USA to participate in the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, financing was announced for Argentina for 8,800 million dollars,” the Treasury Palace reported in a statement released tonight.
The disbursements correspond to credits from the World Bank by u$s2,000 million that should be allocated “to the social protection, education and help for vulnerable sectors to make transportation and electricity rates more affordable.” In addition, the CFI, World Bank agency in charge of financing private investment will provide US$3,000 million for sectors of the sustainable mining, renewable energy, health, in addition to decarbonization of sectors that are difficult to reduce such as steel and the aviation, and the financing of trade.
The head of Economy and the Secretary of Finance, Pablo Quirno, They also led a meeting with the Brazilian Ilan Goldfajn, president of the Inter-American Development Bank (IDB), who announced that the organization “will support the country with more than US$2.4 billion for the public sector.” Goldfajn also confirmed that the IDB Invest will promote financial support to the Argentine private sector for the next two years, for an amount greater than the US$1.4 billion.
Source: Ambito
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