The expansion of the issuance of the National Treasury Bill in Dollars seeks to optimize the management of interest payments to the Central Bank, aligning with current legal and financial provisions.
He Ministry of Economy authorized the expansion of a public debt issuance to meet a maturity of interest on a non-transferable bill of the National Treasure in the portfolio of Central Bank of the Argentine Republic (BCRA). That is, the Government is issuing more debt (treasury bills) to pay a portion of other previous debt.
The measure was carried out through the Joint Resolution 58/2024 published this Thursday in the Official Gazette and which is based on several previous laws and decrees that establish the rules for the management of public debt in Argentina. It should be remembered that these laws delimit the maximum amounts of debt that the government can contract and the conditions under which it can do so.
Debt: details of the bill expansion operation
In this context, the rule indicates that 60% of the interest payments of certain non-transferable bills will be replaced with new titles with a 5-year term, with an interest rate linked to the BCRA reserve rate or the SOFR TERM. The expansion is for a nominal value of US$816,651 or United States dollars eight hundred sixteen thousand six hundred fifty-one.
The official text mentions that the aforementioned is not a fixed amount, since “the final amount of the issue could be less, but not greater than this limit. The exact amount will depend on several factors, such as investor demand and needs. of government funding at that time. The bill that is expanded via Resolution is the Non-transferable National Treasury Bill in US Dollars maturing on April 3, 2029”, originally issued on April 3, 2024.
Finally, the resolution argues that this operation is within the limits established by law and that it is necessary to meet the government’s financial obligations.
Source: Ambito
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