The national government announced early Wednesday morning that will repurchase Argentine foreign debt papers for more than US$1,000 million. The measure is taken in a context of exchange tension, and is announced before the opening of the markets and in the prelude to a new and key tender for public debt in pesos.
“We have made the decision to carry out a process of repurchasing Argentina’s external debt for more than one billion dollars that begins today,” said Sergio Massa following highlighting the achievements and guidelines of his management. To this end, through a joint resolution of the Ministry of Finance and the Ministry of Finance, has been entrusted «to the Central Bank of the Argentine Republic to carry out this repurchase process on behalf of the Treasury,” he added.
The minister said that the decision was made before “a window of opportunity” given “by an improvement in the maturity profile of the (debt) curve in pesos” and por a drop of more than 1,000 points in the country risk. In this sense, he clarified that the objective of the measure is “to continue improving the profile of Argentina’s external debt to continue lowering the country risk.”
This is a first step, very focused on global (bonds), especially short-maturity ones.
Sergio Massa, Minister of Economy of the Nation.
In this way, it seeks to improve access and financing conditions for the business and public sector of our country, through an improvement in the rating of Argentine securities by credit risk rating agencies.
“This is a first step, very focused on global (bonds), especially short-maturity ones, because we understand that this is where we must attack for better debt management,” said Massa, and warned that “surely over the next few months we will take other measures like the one we are taking today«.
- USD 1,000 million
- It is the approximate amount of the external debt repurchase announced by the Government this morning.
In the message, he implies that the “target overachievement” in 2022 and the improvement in the values of export products and the lower level of imports in 2023 gave room to implement this measure. In turn, he recalled that the four premises of his management are given by the fiscal order, the accumulation of reserves, the growth of exports and development with inclusion.
As reported by ambito.com, the operation begins today with a bond purchase order for US$ 300 million, while Argentine dollar bonds jump up to 12% following the announcement.
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