Economics Team Launches Voluntary Peso Debt Swap to Reduce Maturity

Finance Secretary Eduardo Setti and CNV President Sebastian Negri lead meetings with investors

The economic team has launched one of the measures announced by the Minister of Economy serge massa In his first public speech: Voluntary exchange of credit in pesosThrough presentations to market players, officials presented the characteristics of the operation, which will begin on Tuesday 9, and aimed at Reduce heavy deadlines for the coming months and extend payment terms.

The government has already estimated that there is already 60% acceptance by loan holders to carry out this exchange of securities, which is to be expected since Enace and the public bank are the main holders of these securities. This way they are assured in advance that there is a relevant amount of swap.

The presentation of the exchange was made through the meetings held today during which the team of the Ministry of Finance which leads Eduardo Setty With the Chairman of the National Securities Commission, Sebastien Negrikand the chiefs of the counselors of the ministry, leonard madcurwith representatives of the main institutional players in the market “Aiming to communicate on the Treasury’s financial strategy and to strengthen the conditions of the debt market in peso”, as explained in Economics. Representatives of banks, chambers of mutual funds and insurance companies participated in these meetings.

“This is a voluntary conversion operation of public market debt instruments maturing in the next three months”which would allow the Treasury to extend terms through dual instruments tied dollar/CER expires in June, July and September 2023, he added.

According to official sources, the objective of the voluntary exchange operation is to “reduce the profile of Treasury debt with longer maturities within the month, which will contribute to the normalization of the debt market in pesos as we’ve seen it since the previous month”.

The auction will take place next Tuesday 9 and the new bonds will be settled on Friday 15. Bonds (Lesser, Lepes, Ledes) maturing in August will receive a “The Argentine Nation’s Dual Currency Bond” due June 30, 2023The instrument will adjust to the evolution of the dollar and inflation (CER) and will be fixed at auction.

The bonds maturing the following September (Boncer and Ledes) will receive in exchange a security with the same characteristics as the previous one maturing on July 31, 2023. The third option would be for those looking to exchange the laser and ladder bonds maturing in due in October, which would be offered the same bonus as the previous ones. Maturity on September 29, 2023.

According to official sources, the objective of the voluntary exchange operation is to “reduce the profile of Treasury debt with longer maturities within the month, which will contribute to the normalization of the debt market in pesos as we’ve seen it since the previous month”.

During the presentation of economic measures held last Wednesday at the Microcinema of the Ministry of Economy, Massa described the implementation of the exchange. Eliminate any possibility of government default on peso loans. The previous week, posted prices had fallen drastically, forcing the Central Bank to “come to the rescue”. Thus, the monetary authority had to buy 1 billion pesos in these bonds.

“We are fulfilling our obligations as a government. There has been a lot of talk lately about the high concentration of peso debt maturities in the coming months. To provide greater predictability and eliminate uncertainty, we are introducing voluntary swapping until maturity in pesos over the next 90 days. The exchange will end on Tuesday, for which we already have compliance commitments of more than 60%,” the economy minister said.

“Let me convey the idea to you so that those who speculate on debt reframing understand that the public and investors need not worry”Wart added.

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