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Luis Caputo renewed debt for $ 5 billion and absorbs pesos to reduce the monetary base

2024-02-17T03:40:26.165Z

Highlights: Luis Caputo renewed debt for $ 5 billion and absorbs pesos to reduce the monetary base. Economy obtained almost $3 trillion above the maturities of the next few days. It will buy back debt from the BCRA for the equivalent of 30% of the monetary Base. "Zero coupon" debt has negative real rates -3.48% and 3.47%, respectively. The Government reported that in January there was fiscal balance. "This operation allows us to continue with the process of cleaning up theBCRA's balance sheet," said official sources.


Economy obtained almost $3 trillion above the maturities of the next few days. It will buy back debt from the BCRA for the equivalent of 30% of the monetary base to reduce the amount of money and lower inflation.


This Friday, the

Ministry of Economy

awarded

public debt

in pesos for almost

$5 billion

with the local capital market, made up of

banks, Common Investment Funds (FCI), insurance companies, various companies and retail investors

.

Thus, the portfolio led by

Luis Caputo

renewed the debt maturities that totaled about $1.9 trillion and the National Treasury will take the opportunity to

repurchase securities from the Central Bank (BCRA)

for $3 trillion (equivalent to

30% of the monetary base

).

According to Economy, the

Ministry of Finance

, headed by

Pablo Quirno

, received 1,405 offers in this tender and awarded debt for an effective value of

$4,856,437 million

($4.8 billion) with two

bonds tied to the evolution of the inflation

until June 30, 2025 and June 30, 2026. "Zero coupon" debt has

negative real rates

-3.48% and -3.47%, respectively.

Likewise, offers for $565,881 million were discarded for a bill that expires on May 20 of this year, because the objective is to "stretch the maturities."

"The financial fiscal balance of the National Treasury

eliminates the need to take on new debt

. For this reason, the financing obtained above the maturities will be used to repurchase the AL35 sovereign bond in the BCRA portfolio for approximately 30% of the monetary base" , the Government reported that hours later it reported that in January there was fiscal balance.

"This operation allows us to continue with the process of

cleaning up the BCRA's balance sheet

, reducing the monetary

overhang

and improving the financial burden of the Treasury debt," added official sources.

Pedro Siaba Serrate

, head of Strategy at

Portfolio Personal Inversiones (PPI)

, said: "The most striking thing about this time is that they did not repurchase titles in pesos, but rather they went out to repurchase AL35, which is one of the dollar bonds that the Central after the 2020 restructuring. And then a possible reading is that the economic team may be seeing that

the Cash With Settlement dollar (CCL) already had a very strong appreciation

in a short time.

Source: clarin

All business articles on 2024-02-17

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