Friday , August 12 2022

Dujovne must leave the entire 2020 financing to calm markets


Given the increasing concerns in financial markets about the situation in Argentina and the new increase in country risk, & # 39; over 750 basis points, Nicolás Dujovne seek to provide reassuring signals. The finance minister said yesterday that the idea is to "finance pre-2020 debt maturities".

The maximum objective will be to leave the whole year after the elections covered to eliminate the doubts investors have about the government's ability to pay. "We want to minimize the use of dollars to the IMF to pay us, to use as much as & # 39; in 2019 is to make the money available that the & # 39; next year."

The official spoke at the annual meeting of the Latin American Committee & # 39; Financial Affairs at & # 39; & # 39 Hotel in; Colleta. There was heard & # 39; economists from across the region, including Guillermo Calvo, Andrés Velazco (London School of Economics), Guillermo Perry (Ex BID), Augusto de la Torre (Former World Bank), Pablo Guidotti (Di Tella) and Liliana Rojas Suárez (President CLAAF), among others.

F & # 39; recent days the country risk rose 750 points, reflecting the uncertainty that increased investors. But the most notorious are the difference between the bonds expire next year and to do so after elections widened. The Bonar 2019, for example, closed yesterday with & # 39; & # 39 annual yield, 3.7% in & # 39; dollars. But Bonar 2020 and further weakened already makes 9.6%. This substantial difference between years can & # 39; only be explained for one reason: the strong electoral uncertainty.

However, the lack of & # 39; government access to international markets complicate the objective of & # 39; "Making & # 39; cash" f & # 39; dollars to ensure the payment of maturities 2020. How can & # 39; go f & # 39; in that direction? Basically refinancing of local debt.

"If we managed to refinance more than 45% of lete the expiry next year, we already we leave more dollars IMF to be available by 2020". they explained to them Infobae High sources & # 39; finances. Although it seems small task, not so: it will be necessary to see if investors are willing to change the dollar bonds even in & # 39; short term as the elections approach.

From USD 57,000 million to the IMF will lend, a smaller portion will be destined for 2020: under the financial program presented by the Government, is USD 5.9 billion. But that amount can & # 39; increasing as the market behaves the next year.

The IMF will lend the next year USD 22,800 million. The purpose is not to use the money to cancel all debt, as planned, but allocate part 2020 b & # 39; preventive way. Today it seems as less difficult objective.

The financial plan for the year following the elections establishes that there needs & # 39; & # 39 funding; USD 25,800 million. Part of the money is covered will trigger the IMF. The rest must come from private funding. In cases disseminated by the Ministry of Finance, unsolicited one dollar in the international market. There USD 10,500 million & # 39; Other local refinancing and USD 4,600 million & # 39; New placements.

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