Argentina achieved this Thursday, June 8, a “historic” voluntary exchange of sovereign debt in pesos for 7.4 trillion pesos, some 28.9 million dollars at the exchange rate of the day, with an adhesion of 77.8%, reported the Ministry of Economy
Argentina achieved this Thursday, June 8, a “historic” voluntary exchange of sovereign debt in pesos for 7.4 trillion pesos, some 28.9 million dollars at the exchange rate of the day, with an adhesion of 77.8%, reported the Ministry of Economy.
It was an exchange that was carried out successfully, with which it completely clears the debt in pesos in the second semester (of 2023),” the spokesperson for President Alberto Fernández, highlighted at a press conference. Gabriela Cerrutti.
The financial operation was intended to alleviate the maturities in local currency for an amount of about 9.5 trillion pesos (37 million dollars) between June and September, to clear the obligations in a key semester, during which the elections will be held generals in Argentina.
After this exchange, maturities were reduced by 7.4 trillion pesos, the Treasury portfolio reported in a press release.
The Secretary of Finance of Argentina, Eduardo Setti, affirmed that it is the “largest public debt swap in Argentine history in the domestic market, not only because of the economic significance of the impact on public accounts but also because it covers the most important cumulatives of the second semester» of 2023.
According to Cerruti, the “very successful” result of the operation will allow “before the end of the month we can advance on the remaining points with the International Monetary Fund (IMF) to enter a new stage.”
IMF spokeswoman Julie Kozack said the institution “welcomes the efforts of the Argentine authorities to reduce refinancing risks associated with domestic debt,” according to daily Ambito Financiero.
Economy Minister Sergio Massa will travel to Washington after June 20, according to ministry sources.
The Argentine government seeks to renegotiate the 2022 agreement with the IMF to refinance a debt of 44,000 million dollars contracted in 2018.
Argentina expects the IMF to advance the disbursements until the end of the year provided for in the current extended facilities agreement to offset the impact of a historic drought on the economy, which represents almost 20,000 million dollars, and when inflation accumulates more than 100% yoy
This is the third debt swap carried out by the government this year, after one for 3 trillion pesos in January and another for 4.3 trillion pesos in March.
44% of the debt in pesos is held by private banks and funds, while the rest is distributed among state companies, official bodies and individual holders.
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