2024-09-02 15:26:19
The “zero emissions” phase involves an increase in the interest accrual on certain financial instruments, including term loans. What is unknown is whether positive real interest rates will eventually be reached.
The transfer of passive repo stocks from the central bank to the Treasury is accomplished through the issuance of Liquid Fiscal Notes (Lefis). One of the main innovations brought about by this change in strategy is the performance improvement that financial institutions receive from subscribing to them. (The only one with the authority to do so).
Strictly and formally speaking, there is no change in the monetary policy interest rate, with the nominal annual interest rate remaining at 40%. However, commercial banks that accepted government advice and converted their repo holdings to Lefis They now receive higher returns because the tax discount no longer applies to them.
This indirect increase in the active interest rate makes the entity Pay higher profits to savers who deposit funds for a fixed term.
Fixed term: How much the 10 largest banks pay
The Central Bank has established an interest rate comparator to collect and systematize the annual nominal interest rates paid by various financial entities in the country. $100,000 placement for a fixed period of 30 days.
Among the ten banks with the largest deposits in Argentina, Banco Nación and Banco Macro offer the highest fixed-term interest rates: annual nominal interest rate (na) 37%. Three entities followed with returns of 35% At the other extreme is Banco Santander, with an interest rate of 32%. Below is a table of the complete top 10 reports from the central bank.
To know how much I would get for depositing $1,300,000 into one of these banks within 30 days, I have to multiply that amount by the factor shown in the last column of the table above. For example, if I deposit $1,300,000 into Banco Nación within 30 days, at the end of the period, $1,300,000 × 1.03083 = 1,340,079 will be credited to my savings account. That means the return will be $40,079.
Fixed maturity: Can it beat inflation?
The average effective monthly interest rate paid by Argentina’s 10 major banks is 2.88%. This will be lower than the inflation rate in September 2024, taking into account the restructuring of public service tariffs (electricity, gas and transport) and fuel prices in September 2024.
If we take the 37% na paid by Banco Nación (upper end of the top 10)the monthly effective rate is 3.08%. According to the central bank’s latest market expectations survey, inflation is expected to be 3.7% in August.
The effective interest rate is derived from the original capital plus accrued interest reinvested month by month for a fixed period. It should be emphasized that the percentages reported correspond to a 30-day placement and do not take into account possible later changes in interest rates.
BPN: How much does Neuquén pay?
Banco de la Provincia de Neuquén (BPN) pays 34% interest on a deposit of $100,000 for a fixed term of 30 days.according to the entity on its website. If the period is 60 days or longer, performance will be reduced to 30%
Such returns are equivalent to effective monthly interest rates of 2.833% and 2.5% respectively, which are lower than expected inflation.. That is, if you deposit $1,300,000 in BPN for 30 days, you will have $1,300,000 × 1.08333 = $1,336,829 at the end of the period. That’s a return of $36,829.
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