For the ANSes, the exchange or sale of dollar bonds held by the Sustainability Guarantee Fund (FGS) for a special dual bond, in pesos adjusted for inflation (CER) or peso devaluation (dollar-linked), of both the higher, protects the Fund from a possible sharp devaluation or even higher inflation, according to Clarín sources from the organization that administers retirement and pensions and is led by camporista
Fernanda Raverta.
The bonds that the FGS has to sell in the market—which will be done gradually—or to the Treasury have a nominal value of US$ 13.5 billion, but their market value – below 30%
and in the low-round the US$ 4,000 million.
In exchange for these bonds, the Treasury will issue a special bond that ANSeS and other public bodies
will receive at their technical value, with a discount of around 40%, but they will be accounted for at 100%.
Consequently, the bond
will yield a total of 8% per year on the purchase value, plus the adjustment for inflation
and exchange rate.
ANSeS says that this exchange
reduces the volatility of the FGS
and could even have a profit equivalent to some US$ 2,000 million.
because although he would sell the bonds at a low price, in exchange he would receive a bond in pesos also at a lower price.
Although they do not admit it, behind this "play" lies
the fear of a greater currency crisis
that further depresses the value of the bonds in dollars that, at the time, were acquired when they were trading below 20%.
Instead, in that scenario, the dual bond would be protected both if the value of the dollar soars and inflation spirals.
According to ANSeS through a DNU, the FGS
will dispose of public securities denominated and payable in dollars,
obtaining fresh funds and a new Treasury bond.
The bond acquired will be long-term and DUAL
, protecting the Fund against both inflation and possible devaluations.
This bond is safer and much less prone to default and restructuring, since it is payable in pesos and within the public sector.
At the same time, this will contribute to making the FGS portfolio more stable over time.
The FGS will buy the bonds at 60% of their book value, earning an immediate profit.
The operation will imply having funds (around $400 billion) that will be used to stimulate production by financing productive projects and SMEs.
