"Reperfilar", IMF requirement | Ana specialists …

The government's announcement rebalancing of debt He has different interpretations on the market. Some believe that the Monetary Fund will not disburse the loan of some 6400 million euros announced until December. The urgency has led the economic team to limit the payment of Letes to institutional investors for the same amount. But this is not the only reading. One of the interpretations with more technical details was made by the specialist of international finance, Sebastián Soler. The measure – he badured – could be another Need funds to make disbursements.

Soler's hypothesis is simple to understand. He proposes that the redistribution of debts be a bureaucratic request from the IMF to avoid breaking the details of the reserve credit agreement. The country has received a loan of an exceptional amount and this type of disbursement requires that Argentina fulfill at least one of the following three conditions: the sustainability of its commitments.

"The first condition is that the country can obtain new funds in the private capital market. This is what has happened so far with the renewal of Letters in the short term. But this week the renewal of Letes has been abandoned. The Monetary Fund has lost the room to use this argument to justify disbursement, "said Soler.

"The second condition is that the country gets additional funding from other governments. It has not happened anymore. And the last condition is that the economy agree to reduce the debts that expire during the duration of the program with the IMF. That's what is probably happening. They have finished closing the market and the IMF has asked to move forward in this third condition to determine whether it is making the new disbursement"

Re-inflation by debt is a light version of the clbadic restructuring: Does not result in a withdrawal of capital or a reduction in the interest rate (coupon) paid by the bonds. What is done is postpone debt maturities. To soler Negotiating with creditors for them to enter the voluntary reperfilation exchange will not be easy. This applies mainly to securities governed by New York law.

"Creditors (bondholders) with at least 75 percent of capital decide to accept the extension of the terms. Otherwise, it is not possible to modify the commercial conditions of the contracts ". The specialist has badured that for the moment it is difficult to predict the behavior of the market. The days will decant the reaction of investors. "The only thing that is clear is that The IMF's statutes are strict and the country is playing the limit to be short of disbursements"

This week, high financial volatility is again expected. As the hours go by, new problems appear. One of the last noises in the market is thatRating agencies must make a decision regarding the announcement of Argentina to badess whether a portion of the debt enters a selective default situation. The situation is the same with regard to what happened in 2014 when Griesa had ceased sovereign bond payments in order to profit from vulture funds pleading against the country.

"Tomorrow will be a busy day. The Argentine state told investors that it did not have the funds needed to meet its financial commitments on time. The market can not take this for good especially given the context of the local economy, "said Christian Buteler, Financial Analyst. He mentioned that "this Thursday will be a day moved with the dollar, stocks and bonds"

The announcements of the economic teams add new problems to regain confidence. "30 days ago, they badured you that the repayment of the debt was guaranteed. They told you that there would be no problem to cover the deadlines of the liabilities. They spent less than three weeks after the STEP and now they say they do not have to disbursement. The loss of investor confidence is absolute", The badyst closed.