2024-01-22 20:19:54
2024 and, especially, 2025, will be complicated years in terms of debt payment for the new governor of Córdoba, Martín Llaryora. A “free sample” of the challenge will occur in the coming days, when the Civic Center must face the maturities of two of the securities issued during the government of his predecessor, Juan Schiaretti.
This is a total of US$ 27 million corresponding to CO26 (US$ 11.3 million) and C027D (US$ 15.7 million) and which expire on January 29 and February 1, respectively.
Bolsas de Mercados Argentinos (Byma) has already been notified by the Province with two payment notices for the holders of these public securities.
The communications bear the signature of the Secretary of Financial Administration, Mónica Zornberg, and the Undersecretary of Budget and General Accounting, Daniela Rodolfi Tuzinkevicz.
Although the heads of the previous provincial government and the current one agreed in ensuring that Córdoba’s debt is not a major problem in the financial framework of Panal because it is manageable in terms of income, the truth is that since the liabilities are nominated almost in their entirely (98%) in foreign currency, is extremely vulnerable to the increase in the official exchange rate.
Indeed, with the strong increase in the official dollar that President Javier Milei applied when he took office in the Casa Rosada (more than 100% increased), the Province’s liabilities almost doubled – in pesos – between November and December.
To cover the two maturities of these days, Córdoba will have to set aside approximately $22,680 million to be able to buy the necessary dollars.
That total is not a minor amount: It is equivalent, for example, to almost double what the Panal raised in December for three of its own resources combined: the Stamp Tax ($7,845 million), Real Estate ($3,578 million) and Automotive ($1,533 million).
Committed resources
Specifically, next Monday, January 29, the Province faces the payment of the 29th rent service and the 21st CO26 amortization service for US$ 11.3 million.
Of that total, US$9.3 million correspond to capital and US$2 million to interest.
That title, originally issued for US$300 million, is the only one of the four large bonds that was not restructured in 2021 and that is litigated under “local law” (the others do so under “New York law”). US$ 112.5 million still need to be paid.
Three days later, Panal must pay the seventh rent payment following the restructuring of CO27D.
This is US$15.7 million in interest alone on the bond that now matures in 2029 and whose residual value is US$456.2 million. The original nominal issue, which matured in 2027, was US$450 million.
These two bonds, to which the CO21D and the CO24D are added, make up 80% of the Province’s total debt in foreign currency.
The debt is one of the fronts that Llaryora must address immediately in Bustos’ chair.
In the four years that the former mayor of the capital is in the Panal, US$ 1,472 million will mature, only between capital amortizations and interest of those four titles.
According to the payment schedule, the peak will occur in 2025, when US$481 million must be paid (US$398 million in capital and US$83 million in interest).
In addition, there are also committed payments in “hard” currency to multilateral organizations and international banks. In most cases these are euros, but Kuwaiti dinars are also due.
The total debt stock is US$2,285 million, which as of last November (latest official data) represented 3.7 months of collection.
With the devaluation and the sharp drop in Panal’s income (-17% in December), today it represents eight months of collection, more than double that until a month ago, although less than in 2005, when it reached almost 14 months of collection. collection.
In this scenario, as La Voz published last week, the Province began informal conversations with the banks so that, voluntarily, they agree to extend the payment terms of maturities. For now, the idea of the Panal is to buy time.
As with a potential issuance of quasi-currency to pay part of public salaries, the Government’s intention is to undertake a joint strategy with the other provinces that also need to reprofile maturities.
Daniel Passerini also pays: $ 2,000 million of capital and interest
The City of Córdoba, meanwhile, will pay this January 27 the second capital amortization and the fifth interest service of the debt title issued by the then mayor Martín Llaryora in October 2022 for a nominal value of $ 2,000 million (rate of reference 123% + margin 7.75%).
The total payment amount is $788.5 million.
Of that value, $588.5 million corresponds to interest (29% of the total owed) and the remaining $200 million corresponds to 10% of the capital.
The residual value of the title, once the payment is settled, will be $1.6 billion.
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