The Government had to raise rates again to obtain the necessary financing to renew the debt in pesos.
In the operation this Friday they obtained
$332,000 million
, 47,000 million more than the amount that expired this week.
"Today 283 billion pesos were due.
We had offers for almost 600 billion
. We are going to accept 330 billion," Finance Secretary Eduardo Setti tweeted mid-afternoon.
"We want to thank
the market for its strong support
in this new tender for public sector financing," the official remarked.
Setti avoided mentioning what was the rate they had to capture to achieve market support.
Private sector calculations place it at 119.5%,
one and a half points above the last placement.
The economist Salvador Vitelli pointed out that an effective annual rate (TEA) of 119% and 119.5% was paid for the Lede of May 2023 and June 2023, respectively.
"
They paid 118.3% of the effective annual rate (TEA) at 96 days in the LEDES,
the rate continues to rise little by little. What they left out is because it was even more expensive. Quite a CER also at a slightly lower rate than the last. And absolutely everything expires before the STEP", said the economist Gabriel Caamaño, from the consultancy Ledesma.
In addition to the high rate, the other notable element is that
the market only accepts lending in short terms
and having the elections of the year as the maximum term.
"Again,
the bidding stretched the maturities between March and July, without offering titles for after the elections
", indicated from the consultancy Adcap.
The Palacio de Hacienda reported that positive net financing of $389,954 million
was achieved so far this year
, which implies a rollover rate of 138%.
Despite the high refinancing rate, the debt in pesos continues to be a challenge for the government.
Only this year the Central Bank must renew a stock of Leliq for $11 billion.
Only in January the payment of interest on the debt demanded $1,463 million.
On the side of Treasury placements, in recent days it has come out that
Sergio Massa is negotiating with local banks
for an exchange of titles.
With the elections ahead, the banks are no longer satisfied with high rates, but also want guarantees that they
will not be imprisoned by a compulsive restructuring
after the elections.
For this it transpired that they would be negotiating a
"repurchase guarantee"
of these titles in the event that the next administration opts for a new reprofiling.
In this tender, the menu of instruments offered consisted of
five titles
, including a LELITE maturing on March 27, 2023, exclusively for Mutual Investment Funds.
In addition,
two discount bills
(S31Y3 and S30J3) maturing on May 31 and June 30, 2023, respectively, and one CER-adjustable bill (X16J3) maturing on June 16, 2023 were reopened. These instruments are part of the Market Makers program.
Finally,
a US dollar-linked bond
(T2V3) maturing on July 31, 2023 was reopened.
In the tender, 1,928 offers
were received
, representing a total offered of
$597,224 million
, of which a total of
$361,513 million was awarded,
representing an effective value of
$332,400 million.
Of the total financing obtained,
70% was represented by fixed-rate instruments
, 19% by instruments adjusted by CER and the remaining 11% by instruments adjusted by the exchange rate.
Within the framework of the Market Makers Program, the Second Round will take place next Monday, where
offers may be received and awarded for up to 20% of the total face value
awarded in this Friday's bidding.
AQ
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