The government has extended the term of office of Letes and Lecaps by six months | Chronic



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The national government has formalized the 180-day extension, for legal entities only, of the maturities of the Pesos (Letes), the dollar (Lelink), and the reference stabilization coefficient (CER) maturities. ) and capitalizable (Lecaps).

The decision was validated by the decree of necessity and urgency 596/2019 published Thursday in the Official Journal. The extension of the deadlines had already been announced Wednesday afternoon by the Minister of Economy Hernán Lacunza.

The decree specified that the planned postponement would not reach the Letters whose owners registered on July 31, 2019 in the Caja de Valores are human persons who keep them under their ownership at the date of payment.

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He also stressed that the extension of the planned conditions would not interrupt the constitution of the interests established in the initial conditions. If this rate is variable, the same methodology as that provided in the initial conditions will continue to apply for each debt security.

For legal persons, the measure specified that the payment obligations corresponding to the securities representing the short-term national public debt, ie 15% of the amount due on the respective maturities, would be canceled. Which are provided in the terms and conditions of origin.

Within 90 calendar days after the previous payment, 25% of the amount due on the due date will be paid, plus interest accrued on the balance of the said amount, net of the payment made. The decree also stated that the remaining balance would be canceled 180 calendar days after the initial payment.

However, in the case of the Lecaps expiring on January 1, 2020, the payment of the balance remaining after the first payment provided on its original date will be settled in full within 90 calendar days of the due date. payment

According to the DNU, in 2018, Argentina "It was simultaneously affected by a decline in export capacity, resulting from the adverse impact of climate events on agricultural production, as well as a reversal of international capital flows resulting from monetary policy measures. exogenous, which resulted in an unexpected devaluation of the type of nominal change relative to the US dollar ".

This situation, continues the decree, "it has caused uncertainty in the financial markets, as evidenced by the sharp and sustained decline in trading prices of domestic government debt, which has emerged as a result of recent calls for bids by investors. August 13 and 28, National Treasury Bills, which indicate a loss of access to new financing via the markets ".

They are mentioned later "reasons of caution" What "they impose the need to adopt timely, adequate and reasonable preventive measures, which interrupt a process of economic deterioration which negatively affects the whole of society and, in particular, the most vulnerable sectors, as well as the consequences of the current electoral process ".

The DNU is justified in order to facilitate the country's "Respect the respect of your financial commitments and, at the same time, dispel the uncertainties related to the difficulties of access to financing".

"It is urgent and necessary to create a sustainable framework for short-term public debt which, combined with other fiscal and monetary policy measures adopted by the national authorities, generates a change in expectations, anticipating the deterioration of the described picture", adds -t it. Decree

The complete decree

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