Public Debt Operations – December and 2019 Cumulative

Public Debt Operations – December and 2019 Cumulative

During December, placements of securities and loan disbursements were recorded for the equivalent of USD9.82 billion, of which USD4.84 billion were net transfers of Temporary Advances from the Central Bank (BCRA). For the first time since July 26, an auction of instruments in pesos was held, which resulted in the placement of Treasury bills for AR$37.01 billion.

In December, the National Executive Power ordered a new deferral of payments of Treasury bills in dollars until August 31, which implied a deferral of maturities for approximately USD7.47 billion.

In the first half of 2019, the Treasury was financed mainly through the placement of short-term bills, repo transactions with commercial banks and the disbursement of the International Monetary Fund. The worsening of financial conditions in the second half of the year implied the closing of the market and the search for financing in public sector entities.

The debt service maturity profile (principal and interest) for 2020 totals USD69.7 billion. However, excluding maturities within the public sector, estimated services are reduced to USD36.21 billion.

For January, debt maturities of approximately USD3.06 billion are expected between amortizations (USD1.66 billion) and interest (USD1.39 billion).

Public Debt Operations – September 2019

Public Debt Operations – September 2019

  • At the end of September, the Executive Branch submitted to Congress a Bill for the inclusion of Collective Action Clauses in sovereign bonds under domestic law. The Bill does not include a restructuring proposal but establishes the basis for such restructuring. It would affect domestic marketable government securities issued under Argentine law, which represent 24% of the gross public debt and of which it is estimated that at the end of September 2019 there was about USD27 billion in face value held by private creditors.
  •  Further measures were announced to cover the financial program in the last quarter of the year, and the ban on public credit operations to finance operating expenses was suspended for the rest of the year.
  • During September, there were placements of securities and disbursements for the equivalent of USD291 million and principal and interest payments totaling USD3.25 billion, of which 64% were amortizations. Interest payments totaled USD1.18 billion, of which 69% were made in pesos.
  • For the last quarter of the year, debt maturities are expected to be approximately USD16.75 billion between amortizations (USD11.46 billion) and interest (USD5.29 billion), of which 62% will be paid in pesos. The approval of the fifth review of the IMF Stand-By program and the respective disbursement is still pending.
Public Debt Operations – August 2019

Public Debt Operations – August 2019

  • With the financial markets facing an episode of extreme volatility, the Executive Branch announced in August a rescheduling of the maturities of Treasury bills held by institutional holders.
  • The rescheduling reversed the maturity burden: under the original terms, 77% of the payments were to be made this year. But under the new schedule, 72% will be cancelled in 2020. Estimated maturities for 2019 are reduced by USD9.3 billion, but because of the extension of maturities, an additional USD1.47 billion of interest will accrue with respect to the original payment schedule.
  • Placements of securities and loan disbursements for the equivalent of USD1.8 billion were recorded in August, mainly with transactions within the public sector.
  • Principal and interest cancellations for USD17.06 billion were made during the month, of which 96% were for repayments of principal. The major amortizations for the month were the cancellation of bonds issued as collateral for repo transactions.
Public Debt Operations – June 2019

Public Debt Operations – June 2019

  • During June, placements of government securities and loan disbursements totaled USD7.72 billion. The issuance of Treasury bills and bonds totaled USD7.3 billion.
  • As a result of three public auctions, Treasury bills in pesos and dollars for the equivalent of USD4.72 billion and bonds for USD885 million were placed.
  • Debt service amounted to USD7.54 billion in June, with USD6.27 billion in principal payments and USD1.27 billion in interest payments.
  • At the end of the month, the BONAR DUAL 2019 was cancelled for a total of AR$47.5 billion, including AR$45.46 billion of principal and AR$2.04 billion of interest.
  • Main maturities scheduled for the month of July are Treasury bills in pesos and dollars. In addition, there will be interest payments on DISCOUNT bonds and different BONARs in dollars whose coupons matured on June 30.
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