The resolution establishes a limit of 25 billion pesos to carry out conversion operations of Eligible Securities, after the successful debt exchange on Friday.
As reported by the Vice Minister of Economy, Pablo Quirno, The Government achieved on Friday an acceptance of 64% of the total maturities of eligible securities that expire between May and November 2025. “$14 trillion of maturities are cleared. The private sector contributed approximately 55% of its holdings. The average life of the maturity profile was stretched from 0.54 to 1.51 years,” celebrated the second of Luis Caputo.
“The capitalization rate was reduced from a weighted average of 3.94% TEM of the eligible securities to 2.20% TEM of the new portfolio,” added the official of the Treasury Palace.
In this context, this Monday the Official Gazette published the Joint Resolution 4/2025, which authorizes and regulates a conversion operation of public debt securities.
As mentioned in the official text, the objective of the measure is to carry out a conversion operation of “Eligible Securities” (existing debt) for a basket of new National Treasury bonds in pesos. This implies that holders of certain old bonds will be able to exchange them for a combination of new bonds with different maturities.
Financial instruments created
- National Treasury Bond in pesos at a dual rate maturing on March 16, 2026.
- National Treasury Bond in pesos at a dual rate maturing on June 30, 2026.
- National Treasury Bond in pesos at a dual rate maturing on September 15, 2026.
- National Treasury Bond in pesos at a dual rate maturing on December 15, 2026.
Each of these bonuses has the following main characteristics:
- Issue date: January 29, 2025.
- Currency: Weights.
- Amortization: Full at maturity (principal is paid at the end).
- Interests: They will be paid at maturity, using the maximum between a predetermined fixed rate and a variable rate referenced to the TAMAR rate (interest rate for fixed-term deposits of more than one billion pesos). This means that the investor will receive the highest return between the fixed rate and the variable rate.
- Negotiation: They will be negotiable in the Electronic Open Market (MAE) and in stock exchanges and stock markets in the country.
The amount of the operation is up to 25 billion pesos (VE $25,000,000,000,000)as specified in article 1 of the resolution. This amount is intended exclusively for the conversion operation of the aforementioned Eligible Securities.
The regulations refer to several laws and decrees that regulate the financial administration and control of the public sector, such as Law 24,156 (Financial Administration and Control Systems of the National Public Sector) and Law 27,701 (General Budget of the National Administration for fiscal year 2023, which applies to 2025).
Several decrees and resolutions that modify or complement these laws are also mentioned, establishing the legal framework for public credit operations.
Source: Ambito
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