The Ministry of Economy managed exchange debt securities for two billion pesos that were due in August, September and October, with a participation of 85%, through the placement of “dual bonds” with which he postponed those payments until 2023 and that will allow him to face commitments for 479,991 million pesos in the next three months.
This was reported this Tuesday by the portfolio led by Sergio Massa through a statement in which he reported that the investor interest was reflected in the 1,233 offers received for US $ 15,662 million, which is equivalent to an effective value of two billion of weights.
The interest for these dual bonds is that at the time of maturity, the holder can choose if he wants to be adjusted for the variation of the retail price index, or for that of the dollar.
The Treasury had to face maturities for 615,862 million pesos this month, another two billion 123,801 million in August, and 807,068 million in October.
“After this conversion operation, it managed to reduce projected maturities to 115,318 million this month, to 209,337 million for the next, and 155,336 million in October”added the official information.
The note of the economic portfolio highlighted that “83% of the maturities projected for October, were placed in the dual instrument with maturity in September 2023. That is, 651,862 million were awarded post (elections) PASO”.
“The result was successful”, Massa assured through a message on his Twitter account, referring to the exchange of titles.
“We appreciate the trust and support of institutional investors, individuals and public sector organizations, which allows us to alleviate the financial situation for the next quarter, extending maturities to 2023,” said the Minister of Economy.
And he concluded: “Clearing maturities enables us to work in a more orderly manner on the resources and expenses we have to manage public accounts, in addition to giving certainty to the domestic economy. I appreciate the tremendous work of the Finance team.”
The result was successful.
We appreciate the trust and support of institutional investors, individuals and public sector organizations, which allows us to alleviate the financial situation for the next quarter, extending maturities to 2023. pic.twitter.com/gHtU7BlMx1– Sergio Massa (@SergioMassa) August 9, 2022
Economy offered a Dual Bond maturing in June 2023 and to deliver in exchange Treasury Bills adjusted for inflation (CER), or another at a variable rate plus 14%, both payable on August 16, or a third at Discount but maturing on 31 of this month.
The second option is another Dual Bond maturing in July 2023 and the securities to be delivered were a CER-Adjusted Bond, plus 1.3% maturing on September 20, and a Treasury Bill at a discount, payable on September 30. September.
The third is another Dual Bond but with maturity on September 30 of next year and for it it was possible to exchange the Treasury Bills, with CER and at a discount that must be paid on October 21, and the Discount Treasury Bills with closing on 31 October.
Last week, the Minister of Economy, Sergio Massa, had anticipated that this exchange already had “a level of adherence of 60%”, presumably, of titles that were in the hands of official entities and banks.
This exchange operation is added to the payment of 10,000 million pesos made on Monday by the Ministry of Economy as Temporary Advances to the Central Bank (BCRA), to reduce the debt it maintains with the monetary authority.
The measure had been anticipated last Wednesday by Massa, who maintained that it is a “cancellation path that will seek to continue” since the Government’s objective “is not to ask for more money from the Central Bank to finance the treasury.”
“We are going to get by with the resources we collect and with the financing we can get from the private sector,” Massa had assured at a press conference he gave at the Economy Ministry microcinema.
