The Ministry of Economy refinanced the maturities in February and took on new debt, but it must be paid before the election.
He Ministry of the Economy posted today debt in pesos for 332,400 million dollars in the bidding for bills and government bonds, with which closed financing due in February and got an excess to cover fiscal deficit this month. In return, he picked up Interest ratesin line with what is traded on the secondary market.
As reported by the State Secretary for Finance, Eduardo SettiThese days, the Ministry of Finance was waiting for the payment of 283.457 million dollars of public debt in local currency, and received 1928 offers from the market for 597.224 million dollars.
Eduardo Setti, State Secretary for Finance
In this way, the Government this month achieved "net financing" (new debt) that exceeds 170,000 million dollars and accumulates an additional 390,000 million dollars so far this year.
On Monday the 27th, the second round of this competition will be held exclusively for banks and joint stock companies (Alycs) which are part of the program Market Makers.
financing in pesos
Of the total financing obtained today by the Ministry of the Treasury, 70% were instruments with a fixed interest rate (Discount Notes, Ledes; and Liquidity Treasury Notes, Lelites), 19% instruments adjusted for inflation (Lecer), and the remaining 11% on instruments adapted by official dollar (Bonder).
It is a remarkable fact that fixed rate securities saw interest rates rise to 119% and 119.5% effective annual basis (TEA), representing between 6.75% and 6.77% per month.
Fixed-rate accounts have been paying up to 6.77% per month since June, reflecting that the market still doesn't believe in a sustained fall in inflation
That's the performance they're looking for now. Mutual funds (FCIs) and banks lend money to the treasury, more risky per se deliver it Central Bank (BCRA) through Liquidity Letters (Leliq), which are the other party term deposits.
In addition, those who subscribe to inflation-adjusted accounts receive almost an additional 5% in relation to price developments, and those who have taken bonds dollar linked will get 4.1 percent more than the July 31 exchange rate variation.
debt in pesos and relation to inflation
In this context and considering the "slightly positive" real interest rate, such as the one requested by the Government, market distrust in the continuous process of lowering inflation at least until June.
Once again, the tender extended its maturity between March and July, with no titles offered after that elections. This is how the profile of short-term financing is consolidated, which It reflects market doubts about the next administration's willingness to honor peso debt payments. According to Together for Change (JxC)this situation is an unsustainable "bomb".
The next operation of this type will be performed on Wednesday, March 22, and mega is expected for those days debt replacement for $6.5 trillion covering maturities from the second quarter of 2023 (April - June) to 2024 and 2025.
In order to gain financial peace, the exchange could also be extended to titles that are amortized in the third quarter (July - September), when the election process begins and citizens will attend simultaneous and mandatory open primaries (PASO).
Source: Cronista
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