View of the headquarters of the Ministry of Economy in Buenos Aires (Argentina). . / Juan Ignacio Roncoroni / Archive
After the announcement of the agreement with the creditors for the debt in dollars known last week, the Ministry of Economy successfully faced its first placement of debt in pesos. Through a tender for four titles, it managed to capture $ 107,589 million, clearly above the $ 70,000 million originally offered and the maturity of $ 50,042 million.
In a context of high liquidity, as a result of the flood of pesos pushed by the Central Bank to face the fiscal imbalance of the pandemic, The government thus manages to get hold of pesos and not have so much dependence on that issue from the monetary authority. It should be noted that during the month of July, the BCRA provided $ 220,000 to the Treasury through temporary advances and transfer of profits.
The bonds placed were the National Treasury Bills in pesos at a discount (Ledes) maturing on December 30, of which $ 41,880 million were awarded; for the same title, but maturing on January 29, 2021, $ 32.7 billion were awarded; for the National Treasury Bonds in Pesos Adjusted by CER plus 1.30%, maturing on September 20, 2022, $ 20.1 billion were awarded; Finally, for the same title, but with a rate of 1.45% and maturity on August 13, 2023, $ 12.8 billion were awarded.
As considered Diego Bastourre, Secretary of Finance, the tender « is remarkable » because of the volume placed and because it allowed to initiate an extension of the terms:
« Extending the placement terms at sustainable rates constitutes a fundamental pillar for the development of the capital market and its depth, which translates into better conditions of access to domestic financing on a day-to-day basis not only for the National Treasury but also for the provinces , companies and people« Bastourre noted.
The Secretary of Finance also highlighted that funding rates were reduced « in line with the compression of spreads observed in the CER-adjustable securities curve. »
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