This Monday Guzmán placed four bills on the market and obtained $ 130,454 million, that is, almost 5% of what is necessary to cover the short-term debt maturities of this last week of the year, of $ 125,300 million.
By adding up all the extra financing that the Treasury obtained throughout the year, Guzmán hoarded additional resources for maturities of $ 386,730 million and celebrated it with several statements in which he also thanked the market for its collaboration in normalizing the yield curve. maturities, that is, in which the interest rate for short-term loans is lower than that of longer-term loans.
And although among the private sector they assure that they feel that the public sector takes all the pesos and makes financing of working capital more expensive and they continue to ask that interest rates be aligned with the productive reality, they recognize that the peso curve has been normalized .
Meanwhile, in the team of Minister Guzmán they celebrate that they managed to close the year with the official dollar within what he projected, which and with more financing for the fiscal deficit in the local market and in pesos. In the official twitter of the Ministry they highlighted in capital letters that with the almost $ 400,000 million the GOAL was EXCEEDED.
“112% of the maturities were refinanced, above the 110% expected for the last two months. December closed with a 121% renewal, for an extra financing of $ 50,334 million”, they detailed.
ECONOMY CLOSED 2020 WITH EXTRA FINANCING OF $ 386,730 MILLION AND EXCEEDED THE GOAL
112% of maturities were refinanced, above the 110% expected for the last two months. December closed with a 121% renewal, for an extra financing of $ 50,334 million.
– Ministry of Economy of the Nation (@Economia_Ar) December 28, 2020
With these amounts, the Central Bank should receive a refund of Temporary Advances for 11% of December maturities, or 2% of the two-month period. However, Diego Bastourre confirmed to Ámbito that they will not comply with this promised return on November 2: “We are not going to return, but we are not going to request,” said the Finance Secretary.
Guzmán drastically lowers the broadcast and announces that he will not ask the Central for more advances until the end of the year
In this sense, from the Palacio de Hacienda they recalled that when they came to the management “The yield rates of the existing instruments, in levels higher than three digits and in ranges between 150 to 300% per year, evidenced a situation of abnormality, then of the reprofiling of the payments of public securities in pesos arranged in August 2019. At the same time, a maturity profile concentrated in the very short term had to be faced; with 71% of the commitments due in the first half of 2020. “
“In this context, a comprehensive policy consistent with the rest of the agenda for restoring public debt sustainability was designed and implemented. In the peso debt market, it was quickly possible to restore financing at sustainable rates for the Treasury. and positive in real terms for investors, “they added in relation to the work of Diego Bastourre and Ramiro Tosi, the officials in charge of directing the normalization of the peso market.
In the statement released by Guzmán, they also highlighted that the normalization of the yield curve in pesos is part “of a long and laborious path but that it is a necessary condition to retrace the path of bimonetarism. In 2021 the continuity of the normalization agenda will be central. for the fulfillment of the macroeconomic objectives of short and medium term “.
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