The Ministry of Economy evaluates extend exchange offer of the Global bonds in dollars that will be ordered for public sector organizations to which private holders in an optional schemethey assured infobae official sources.
This is one of the measures prepared by the Palacio de Hacienda to seek a greater power of intervention on the market of counted with liquidation and avoid sudden price jumps in the months leading up to the presidential elections.
One of the legs of this plan will be the mandatory conversion, according to a decree to be published by the Executive Power in the next few hours, of bonds in dollars called Globals, that is, they are governed by foreign law, in exchange for dual titlespayable in pesosand that protect the holder against inflation and before variations of exchange rate.
According to preliminary reports, this step was going to be carried out only by the holders of the public sector, but the economic team is now studying extend that possibilityoptionally, for the private sector.
In the case of public portfolios, the exchange of Globales in dollars would be carried out towards dual bonds, but it was not confirmed if the private ones would also only have that variant to choose from or if it will be included in the operation. Bonaresthat is, titles in dollars but issued under local law.
With a decree that sources from the economic team assured that it will be published in the next few hours, the Government will carry out a forced exchange of bonds in dollars held by holders of the public sector, mainly the FGS of Anses. Only titles will be entered in this operation globalthat is, those that are governed under foreign law. The Treasury will give in exchange bonds payable in pesos and will unlist the Globals. When this first stage is over, Economy expects to have removed some USD 4,000 million from the circulating stock.
The second measure will be to use the other part of the bonds in dollars within the public sector -the Bonaresgoverned by local law- to make more dense the “cash with liquid” market. There will be periodic auctions ordered by the Ministry of Economy and the Central Bank. From the economic team they assured that not “imminent” the implementation of this sales mechanism and that “it will not be with large volumes” In the beginning.
The double mechanism will chase two goals. The first, by giving a greater depth to the cash market with liquidation, is to avoid that -in a market that trades around 60 million dollars daily- a few purchase orders generate a rocky price and that alters investor sentiment. Secondly, linked to that, that financial dollars with less volatility have less impact on the inflation expectation.
A private report that circulated this morning among investors indicated that, in practical terms, some USD 15,000 million nominal AL bonds (Bonares) could be put up for sale for this new offer -not counting those held by the BCRA- with a market value of $3.75 billionthis would imply a financing horizon in pesos for the Treasury of 1.5 trillion pesos. Official sources consulted by infobae They placed that number closer to the 2 billion.
Minutes after the meeting with the financial sector, Rubinstein explained on his Twitter account what objectives the Ministry of Economy is pursuing with the new measures. “Today we begin give it depth to the bond market in local law dollars, starting with the purchase of holdings of global bonds from public entities, which will allow the foreign law (global) public debt to be lowered, by some USD 4,000 million initially,” he began.
“The State, without using BCRA reserves, will continue rescuing and delisting global bonds, reducing external debt. On the other hand, the restrictions that investors have today to buy AL Bonds will be released and this new demand will be supplied by the MECON and BCRA, in coordination with market players, ”he continued.
“In a sustained manner, the State will gain capacity to act in the financial dollar markets, which will allow avoid disruptive rises of the CCL and MEP, a key factor for the deployment of measures that strengthen the macroeconomic order”, concluded the Vice Minister of Economy.
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