Minister Lacunza announced the restructuring of the debt

But the government considers that "the ordinary citizen is very concerned about who is right. I think rather that he wants to know how we are going to take care of him starting today, from August 28 to October 27, or until November 24, when he gets there. There is a vote. And what tools are left for the (president) to take care of him as of December 10, the current one is reelected or another candidate wins. "

He insisted on the question of the uncertainty generated by the policy "whoever wins can not get by without tools," said the minister, who also recalled that "there is 91 years, almost a century ago, that a non-Peronist president could end his term and form mandate ".

One of the measures is that Lecap Letes Lecer and Lelinks (approximately $ 13 billion) held by institutional investors – legal entities – will be refinanced according to the following detail:

• Each expiry date will be paid: 15% on the expiry date, 25% on three months and 60% on 6 months.
• Each security will accumulate its corresponding rate until the date of payment.
• In the case of LECAP expiring after 2020, only 3 months will be extended.
• Human persons will not be affected, provided that the amount credited to the principal account on the expiry date is equal to or less than the amount entered in the same account on July 31, 2019.

It should be noted that human beings account for 90% of the holders in quantity, but in quantities about 15%, according to Treasury sources. In this way, we can interpret that with this measure, The economic conduction refinance about 85% of the amount owed on the short-term debt, which eases the provision of reserves to contain the dollar.

conference lacunza 4.jpeg

Photo Ignacio Petunchi

To "clarify the financial needs of the 2020-2023 period and that the president who wins the next elections can deploy his economic and social policies without excessive financial conditions", Mr. Lacunza announced that a bill will be submitted to Congress to provide the necessary tools to promote "voluntary renewable inflation of capital maturities under local jurisdiction, without capital or interest suppression and with the sole extension of conditions".

Although this project is under development, it is explained that the legislature will be an indispensable instrument for negotiating the executive power to negotiate in this regard.

A third measure consists of the "beginning of the process of rebalancing obligations under foreign law, collective action clauses, with the same purpose of lengthening the terms of maturity, without withdrawal of capital or from interests, in order to complete a less demanding financial profile for the period 2020-23, which generates financial relief for the realization of economic and social policies that place the country on a path of sustained growth, "explained Lacunza. To that end, the minister plans to invite the banks tomorrow to submit proposals.

lacunza 5.jpeg conference

Photo Ignacio Petunchi

In the fourth and final announcement, the minister referred to the renegotiation of commitments with the International Monetary Fund. According to the authorities, "in addition to strict compliance with all budgetary and monetary objectives of the agreement with the IMF to maintain the current agreement, we have proposed to this international organization to initiate the dialogue, which must end inexorably in the next term, in order to rebadess the deadlines of its debt with this international organization ".

In this regard, the agency said in a statement that "Regarding the functioning of the debt … the staff of the Fund is badyzing and evaluating its impact."He then notes that the IMF understands that" the authorities have taken these important steps to meet the liquidity needs and preserve the reserves. "

It is badumed that, in principle, the planned disbursement for October should not present major drawbacks, one of the Fund's concerns being precisely the loss of reserves.

Immediately, at the Palacio de Hacienda, they understand that, given the exceeding of the budgetary and monetary objectives of the current confirmation agreement, The Fund will disburse the US $ 5.4 billion project in the near future.. The disbursement date is not accurate, but the finances understand that it should be specified between end of September and beginning of October.

Lacunza explained in its presentation that these measures should be taken in a context of "Uncertainty of the financial markets". In fact, today, the bleeding of reserves has continued to flow, the BCRA has sold more than 350 million dollars, LETE auctions have been abandoned, the withdrawal of dollar deposits persists and the exchange rate stop , which rose more than 5% in the week.

lacunza 8.jpeg conference

Photo Ignacio Petunchi

In a political speech, the Minister stated that "We need all political forces to ensure stability" to face the current situation and declared that "normalcy" was up to the citizens to overturn the fact that "in 91 years, no non-Peronist government could finish its mandate as soon as possible".

In principle, the announced measures try to dispel some doubts: the ghost of a default, the eventual lack of central bank money to cope with increased demand and erase the scenario of the expiration with the International Monetary Fund. The big test of whether these measures erases uncertainty. The answer will begin to be known tomorrow after 10 am when markets are open.