The Limited Times

Now you can see non-English news...

Economy insists: it announced again that it is going out to repurchase bonds for US$ 100 million


Dollar debt falls to 1.5% in New York. They seek to stop the decline.

On Tuesday, in the midst of the fall in bonds, Finance Secretary Eduardo Setti announced

in a tweet

that they were going to repurchase US$200 million in bonds, 20% of the total amount planned.

That day, the titles

stopped falling

, despite the fact that the purchase was much

lower than reported.

This Friday, the official who reports to Sergio Massa decided to continue with the

same strategy

, in an attempt to

stop the fall

of dollar bonds that

lose up to 1.5% abroad and up to 2.5% in the country

, making raise the country risk 1.2%, to 1,951 basis points.

"On Tuesday we made a repurchase offer for USD 200 M and we only obtained market proposals for around 5% of the amount offered. Continuing with the

deleveraging process

, today

we will be actively with 10%

of the repurchase program in defense of sustainability of debt," Setti tweeted.

Without official data, the market had estimated that the Central Bank had earmarked between US$25 and US$40 million for Tuesday's repurchase.

If what is sought is deleveraging, it would be convenient for the Economy to buy the bonds at low prices, for which it

would perhaps be more convenient not to announce the operation before carrying it

out .

What he rather achieves with the announcement strategy is that the bonds go up and the dollar counted with liquid goes down.

This search to tame alternative dollars ran into this week with the fight over debt between the opposition - which on Monday issued a statement saying that the debt in pesos was a time bomb - and the Government.

The Vice Minister of Economy Gabriel Rubinstein came out to answer Juntos por el Cambio and to accuse the economists who had signed the note who, in turn, responded to him.

All on Twitter.

All this noise

did not help to prosecute bonds or dollars

Sergio Massa reported on January 18 that he would start a debt buyback program for US$1 billion, of which he would have already used some US$650 million.

After the announcement, an investigation by the National Securities Commission began on the sharp increase in the volume traded with securities in dollars, before and after Massa made his decision public.

On Tuesday, January 17, one day before the repurchase was announced, 265 million nominal GD30 bonds were traded against MEP, compared to an average of 137 million in the month.

One of the hypotheses is that there was

a leak of information

and that it was used to buy bonds in advance.

The other suspicion revolves around a possible manipulation to generate a "run" on financial dollars (CCl and MEP) through the purchase and sale of bonds.


look also

In the midst of the debt fight, bonds fell, the blue rose $4 and the Central Bank continues to lose reserves

Debt: after criticism from Juntos, the Government refloated the repurchase of bonds

Source: clarin

All business articles on 2023-02-10

You may like

Trends 24h


© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.