Debt: Martín Guzmán faces the biggest test to get 180,000 million dollars

The Ministry of the Economy will seek this Thursday to obtain 180 billion dollars on the local market to renew the maturities of the public debt and also to obtain net financing to cover the budget deficit.

The tender will focus almost exclusively on National Treasury bonds in pesos at the fixed rate of 22%, maturing on May 21, 2022 (TY22), within a year and a half.

With this instrument, the Minister of the Economy, Martín Guzmán and his team from the Ministry of Finance want to raise 170,000 million dollars.

It is possible that there will be success in this operation, since the BONTE 2020 (TN20), which expires this Saturday 21, was mainly in the hands of the banks to integrate the required reserves.

The other two securities that will be auctioned tomorrow are bonds that adjust for inflation. This will be a Bonner maturing on August 5, 2021 (TX21), which offers an additional 100 basis points above the benchmark stabilization coefficient (CER) and another maturing on March 18, 2022 (TX22), with a supplement. 1.2%.

For both instruments, an investment of $ 5,000 million each will be offered, although the amount is expandable.

So far in November, the Economy Ministry has raised around $ 3 billion in net funding, although the market has read that Guzmán’s team (with Diego Bastourre and Ramiro Tosi at the helm of the Ministry of Finance) did not succeed.

Does the Palacio de Hacienda need to refinance all maturities until the end of the year (approximately $ 750,000 million) and set itself the goal of obtaining an additional 10% to fill the budget deficit.

In addition, there was confidence in obtaining additional funds to return the transitional advances (TA) to the Central Bank (BCRA) and signal a reduced need for monetary issuance.

In any case, the Treasury has around $ 400,000 million for the BCRA to transfer its profits.