Nobody wants to lend to Macri's government | I know …

For the first time, the Cambiemos government declare the submission of abandoned dollar letters due to lack of demand from investors. In the previous operation, only 5% had been renewed, compared with an average of 80% previously. "The refinancing of liabilities is conditioned by electoral uncertainty, in pesos and dollars," said Finance Minister Hernán Lacunza, announcing a restructuring of these documents. It is about Lecap, Letes, Lecer and Lelinks, with which the government has flooded the market and for which it has come to pay rates of up to 75% per annum.

"The Ministry of Finance announced that the bidding for the date had been declared void," was the agency's brief statement on Wednesday. The result shows the lack of interest of investors to have incurred new debts with the government, in difficult times. strong tension of exchange u and financial, where the dollar has exceeded 60 pesos and the country risk 2112 basis points. However, the low membership rates so far have been offset by luscious interest rates, but bubble This is the one that now scares potential investors, which has led to Lacunza's ads.

The financial program provides for two calls for monthly offers. In the previous one, there was a subscription level of 5% in one week with maturities of $ 1.6 billion, which partly explains the tension on exchange rates that came back this week. Far from the average membership shown each month: January (70 and 114% in each bid), February (90 and 119%), March (69 and 93%), April (53 and 41%), May. (65 and 109%), June (79 and 114%), July (134 and 80%) and August (5% and desert).

The stock of letters announced by the Minister, will be compulsively restructured for institutional investors as follows: 15% are paid at maturity, 25% at three months and the remaining 60% at six months. There will be no withdrawal of capital and interest. Individual investors (human or physical) will be paid on time. The institutional investors they represent 10% of the number of holders, but they hold 95% of the volume of letters in pesos and dollars.