Argentina completes voluntary debt swap in the domestic market
Buenos Aires, Aug 9 (EFE) .- Argentina completed this Tuesday in the domestic market a voluntary exchange for 15,662 million dollars in sovereign bonds in local currency with maturities of up to 90 days for other papers maturing in 2023.
“The result was successful. We appreciate the trust and support of institutional investors, individuals and public sector organizations, which allows us to alleviate the financial situation for the next quarter, extending maturities to 2023,” said the new Argentine Economy Minister Sergio Massa.
According to official sources, after “the conversion operation, 85% adherence in the eligible instruments was achieved in cash value.”
Of the seven bonds and letters maturing in August, September and next October that the Treasury intended to exchange, 58.6% was in the hands of the public sector, according to private calculations.
Massa stressed that “clearing up maturities” makes it possible to “work in a more orderly manner on the resources and expenses” of the public accounts, “in addition to giving certainty to the domestic economy.”
Those who adhered to the exchange will receive three series of bonds, with maturities in June, July and September 2023.
The realization of this voluntary swap had been announced last Wednesday by Massa, who then justified this operation in the need to “provide greater predictability and clear up uncertainty” after doubts had grown in recent weeks about the sustainability of the debt in local currency given the large concentration of maturities in the coming months.
At a press conference, Massa said last Wednesday that “those who speculated with a reprofiling” (rescheduling of maturities) of the debt must understand that “we must not worry the population or the investors.”