June 21, 2021

Argentina places debt in the domestic market for 501 million dollars



Argentina placed on Wednesday in the domestic market Treasury Bills in local currency for a total of 33,080 million pesos (501.2 million dollars), official sources reported.

As indicated by the Ministry of Economy in a statement, in today’s operation, Notes maturing on July 1 were placed for a total nominal value of 4,080 million pesos (61.8 million dollars), with a nominal interest rate annual of 30.7%.

In the same tender, Bills maturing on December 4, 2020 and with a yield adjusted to a coefficient linked to inflation for a total nominal value of 29,000 million pesos (439.4 million dollars) were placed.

As highlighted by the Ministry of Economy, the tender held this Wednesday is the highest volume of the current management.

Since Alberto Fernández assumed the Argentine Presidency at the end of 2019, the country has repeatedly resorted to the domestic market, either to raise funds with which to cancel successive commitments, or to propose voluntary swaps of bonds in pesos with short-term maturities. for other titles of longer duration.

This year alone, Argentina’s debt maturities amount to 48,968 million dollars of capital and 14,838 million of interest, while the reserves of the Argentine Central Bank are currently around 43,585 million dollars.

STRATEGY WITH A VIEW TO A RESTRUCTURING

The strategy of local issues and swaps to avoid falling into default before reaching an agreement with external creditors has worked so far, but the volume of short-term maturities increasingly limits the Treasury’s maneuvering power.

As stated today in a report by the brokerage Portfolio Personal Investments, Argentina will have to face several maturities of debt interest in dollars in April, among them, 503 million dollars for three bonds issued under foreign law and 266 million dollars for three other securities of local legislation.

“The month that begins is characterized by having the highest debt maturities in national currency, mainly concentrated on the maturity of Boncer 2020,” the Ministry of Economy said in its statement.

The Argentine authorities indicated that “the restoration of the sustainability of the debt in national currency requires a collaborative, constructive attitude and a high participation of the holders of said instruments” and “it is a joint effort that will also allow consolidating the credit recovery agenda of the Argentine Republic “.

According to the statement, “it is the persistence of this agenda, the dialogue and positive interaction with all parties, which will help to dispel the doubts and questions that some analysts raise regarding the continuity and sustainability of this course of action.”

The Argentine government aspired to restructure nearly $ 69 billion in bonds issued under foreign law last March, but trading has been delayed amid the global financial storm unleashed by the coronavirus pandemic.

On Tuesday, the government released a document with certain criteria that it hopes to achieve in an eventual swap, although it did not provide details on when it will formally launch a restructuring offer.

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