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In the midst of the financing crisis, the Central Bank turns on the machine again to help the Treasury cover expenses


For the first time this year, the agency sent $130,000 million to the Government in temporary advances.

In the context of

falling reserves

and collection capacity and, faced with a market that is increasingly reluctant to continue financing the needs of the Treasury, the Government once again turned to the Central Bank

for a lifeline


Last Friday, for

the first time

since the beginning of the year, the organization chaired by Miguel Pesce

sent the Treasury $130,000 million.

According to market sources, this shift will not have a monetary effect for now.

However, it

is just below the ceiling

for transitory advances agreed with the Monetary Fund for this first quarter, set at $139.300 million.

Although the reserve accumulation goals were made more flexible this month, those that have to do with monetary matters

remained unchanged.

In this way, the Government also promised that the transfers from the Central Bank to the Treasury would not exceed $372,800 million in the second quarter, $651,400 million for September and $883,000 million accumulated in the year.

That is, 0.6% of GDP.

Last year, the Government had managed to exceed this goal, especially thanks to the fact that in the last quarter, since the arrival of Sergio Massa at the Palacio de Hacienda, the Treasury had not required monetary assistance from the Central Bank.

In this way, for at least eight months the Central did not have to issue pesos to finance spending.

The good performance in the debt market in pesos had allowed the Treasury to dispense with this type of aid, but the

demands posed by the election year

in the context of lower tax collection due to the impact of the drought and in the face of a

debt market "closed" for placements after the presidential replacement,

forced to resort to the usual assistance.

In January and February, the

fiscal deficit jumped

and the public accounts accumulated a red of $432,000 million.

In this context and for the first time in the year, the Government used direct assistance from the Central Bank.

In the market they believe that liquidity needs remain high this month, so they do not rule out new turns. 

Delphos analysts pointed out that this is

a "bad sign within the

current sea of ​​uncertainty, denoting the lack of



that led it to implement this complex debt operation that is basically nothing more nor less than an issue of Bonares in order to obtain fresh financing to cover the fiscal gap".


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Source: clarin

All business articles on 2023-03-23

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