In 2013, the Government used Central Bank reserves to pay debt maturities.
In exchange,
it delivered a Non-transferable Bill to the BCRA for a term of 10 years
.
It canceled private debt by assuming a debt with the BCRA, crediting it in an account paradoxically called "Debt Reduction Fund", when in reality what occurs is a change of creditor.
Now, after that 10-year term has elapsed,
the Government renewed the debt or the Non-transferable Bill for another 10 years:
"Provision is made for the issuance of one (1) "Non-transferable National Treasury Bill in US Dollars due January 16, 2033", for be delivered to the Central Bank of the Argentine Republic (BCRA), within the framework of the provisions of article 82 of Law 27,701 of the General Budget of the National Administration for the year 2023, for an amount of up to the original nominal value of US dollars seven one thousand one hundred thirty-two million six hundred fifty-five thousand twelve and thirty-nine cents (VNO USD 7,132,655,012.39)…”, says the Joint Resolution 3/2023 of the Ministry of Finance and Treasury published today in the Official Gazette.
In the grounds of the Resolution it is stated that in addition to the payments of interest services and principal amortizations of the bills denominated in US dollars that are issued within the framework of the regulations mentioned in the preceding paragraphs will be replaced,
on the date of their expiration, for new public titles
whose conditions will be defined, jointly, by the Ministry of Finance and the Ministry of Finance, both dependent on the Ministry of Economy.
The Non-transferable Bills of the National Treasury placed in the Central Bank have a particularity: the creditor, in this case the BCRA,
cannot transfer or sell them to another person
, both natural and legal, and in fact
must keep them in his patrimony, as a asset plus, until maturity.
And then he can renew them indefinitely.
Among the most important operations carried out under this modality -use of reserves in exchange for non-transferable bills-,
the payment in 2006 of the debt with the International Monetary Fund (IMF) stands out
.
Then, US$ 9,530 million from the BCRA were used to cancel the obligations with the multilateral credit organization and the papers that the bank received, which it must treasure as part of its assets, expired in 2016. Later that year, they were renewed until 2026.
Now the debt with the IMF is US$ 45,707 million
, while US$ 9,530 million are
owed to the Central Bank
that were used to cancel the debt with that international financial organization in 2006.
NS
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