Argentina places debt in the local market for 1,268 million dollars

By: MRT Desk

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Argentina places debt in the local market for 1,268 million dollars

Argentina placed on Monday in the domestic market bills and Treasury bonds in Argentine currency for a total effective value of 219,050 million pesos (about 1,268 million dollars), official sources reported.

According to the Argentine Ministry of Economy in a statement, in Monday’s operation, Treasury Liquidity bills maturing on December 16 and a nominal annual rate of 69% for 27,071 million pesos (about 156 million dollars) were placed among mutual investment funds.

Likewise, two Treasury bills were placed among all types of investors, one maturing next March and a nominal annual rate of 80.09% for 128,056 million pesos (741 million dollars), and the other to mature in April 2023 under a rate of 88.78% for 9,300 million (about 53 million dollars).

Treasury bonds with yield linked to the price of the US dollar maturing on April 28, 2023, for 35,422 million pesos (206 million dollars), and another to mature on July 31 of next year, for 19,201 million (about 111 million dollars) were also tendered.

This Monday was the last of the three tenders scheduled by the Ministry of Economy for November, in continuity with the strategy of resorting to the domestic market launched in 2020 and ratified in the extended facilities program sealed with the International Monetary Fund (IMF), last March.

The objective of these tenders is to obtain financing to face the successive maturities of Treasury debt and, in addition, to capture the liquidity of Argentine pesos and thus decompress the demand for investors to buy dollars for hedging purposes.

In the agreement with the IMF, Argentina pledged to limit and gradually cut Treasury assistance by the Central Bank, making the search for financing in the domestic market even more fundamental.

As reflected in the draft 2023 Budget presented two weeks ago by the Government, the Treasury expects to continue going next year to the local debt market and obtain financing equivalent to 2.7% of GDP there.

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