The Ministry of the Economy is seeking to restructure the debt and cancel part of the interest owed to the BCRA. This measure is within the framework of current regulations, respecting the limits established in the budget law and the decrees that regulate public credit operations, according to the official text.
The total amount of the issue is US$11,778,565.
The Ministry of Finance and the Ministry of Treasury authorized an operation on public debt via the Official Gazette. In fact, the resolution extends the issuance of a Non-transferable Treasury Bill in US dollars maturing in April 2029.
According to the report, the operation is part of the Public Credit System regulated by law, which establishes the rules for public debt operations of the Argentine State, requiring that these operations be contemplated in the budget law.
The official text indicates that the purpose of the extension of this issue is to cancel part of the interest (60%) of the non-transferable bills in the portfolio of the Central Bank of the Argentine Republic (BCRA), using new five-year public securities. The total amount of the issue is US$11,778,565.
What is the main objective of this operation?
The main objective is to refinance part of the debt that the Executive has with the Central Bank. Instead of paying the interest on a maturing debt in cash, the government issues new debt securities with a longer term. This allows it to postpone the payment of interest and obtain cheaper long-term financing.
Source: Ambito
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