With a somewhat quieter market, the Government will once again issue debt in pesos and dollars

After days when the financial market was calmer compared to the weeks after the STEP, The Government communicated through the Official Gazette, which will issue debt in pesos and dollars that will expire in March 2020. The resolution is given after August 13, after the result of the Primary, an issue of similar characteristics has been canceled.

A little over a month ago, when the Government faced its most financially convulsed week, in the context of the exchange rate run and the uncertainty about Argentine bonds, the Ministry of Finance had resolved that it would only tender the Treasury Bills that expire in November, and that it would not comply with the full schedule, which included expired Letes on March 13.

However, this Monday, the issuance of debt in pesos and dollars for a period of 182 days was reported in the Official Gazette, with expiration date on March 13, 2020. The letter in pesos is for an amount of up to 35,000 million, while the letter in dollars is for up to U $ D 275 million.

The Secretariats of Finance and Finance, in the Joint Resolution 62/2019, resolved to order the issuance of Treasury Bills in pesos maturing on March 13, 2020 to be subscribed at the same time by the Sustainability Guarantee Fund (FGS), for an amount of up to 35 billion pesos.

It was clarified that interest "will accrue at the BADLAR rate for public banks plus five hundred (500) basis points. The rate will be determined as the simple arithmetic average of the interest rate for fixed term deposits of thirty to thirty-five days over of one million pesos- BADLAR average public banks-, calculated considering the rates published by the Central Bank from ten business days before the beginning of the interest period up to ten business days before maturity or early cancellation, if applicable. " In addition, they detailed that "the interest shall be calculated on the basis of the days actually elapsed and one year of 365 days and shall be payable quarterly on December 13, 2019 and March 13, 2020".

With respect to issuance of Letes in dollars with an expiration date on March 13, 2020 to be subscribed by the FGS, for an amount of up to US $ 2575 million, it was established with the financial conditions that implies an early subscription price of US $ 961, 64 for each original nominal value of US $ 1,000; with full amortization at maturity, and with early cancellation option.