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Economy faces the last tender of the month to buy back debt from the Central Bank

He Ministry of Economy will tender this afternoon three bonds in pesos, inflation adjusted and with “zero coupon”, and the proceeds from the placement will be used to buy back Treasury debt which is currently in the hands of the Central Bank.

The Receiving Offers will end at 3:00 p.m. for the purchase of National Treasury Bonds, with expiration dates scheduled for June 30, 2026, 2027 and 2028. The bidding for the detailed instruments will be carried out by indicating the value and “they will have no maximum or minimum price”, highlighted the official statement.

For the presentation of offers for these instruments, There will be a competitive section and a non-competitive section.

“Financial balance in 2024 is a central commitment of the Ministry of Economy that eliminates the need to resort to debt to finance the fiscal deficit,” highlighted the portfolio led by Luis Caputo.

Likewise, he explained that “in a framework where We observe market interest in extending deadlines, “The proceeds of this tender will be used to repurchase Treasury debt in the Central Bank’s portfolio.”

Despite the climate of greater uncertainty in the market, After the Government’s decision to withdraw the fiscal chapter of the omnibus bill, analysts predict that the Treasury will obtain a good result, given that given the validity of the exchange rate it works in its favor.

Likewise, the market is expectant about whether the Government will finally advance in February.the definition of a voluntary exchange of debt in pesos to decompress the expected maturity profile in 2024.

A few weeks ago, the head of the economic portfolio together with the Secretary of Finance, Pablo Quirno, had held a meeting with banks to explore the possibility of a mega debt swap. According to reports, Finance is willing to exchange the debt that matures in 2024 for instruments with maturity in 2025, 2026 and 2027 that would be tied to the evolution of inflation.

Economy will offer three bonds adjusted for inflation

To face this tender, the Ministry of Finance prepared a brief menu of three debt instruments, all adjusted for inflation in a scenario where the cost of living in December was 25.5%, and for January a slowdown is estimated that would be around 20%, or somewhat less, according to the latest high frequency data from some consulting firms.

In the basket offered there are three National Treasury Bonds in zero coupon pesos adjusted by CER, with maturities on June 30, 2026 (TZX26), another that expires on June 30, 2027 (TZX27), and the other expires on June 30 of 2028.

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