Despite the pressure that will arise on the exchange rate at the end of the year, the Govt They claimed to have guaranteed the payment of $4.2 billion as early as January 9, without the need for a foreign-law bond placement on Wall Street. According to them, the sources of financing to meet this due date will be diverse THE NATIONand would, as expected, include a repo –Buyback agreement-. The Ministry of Economic Affairs believes that this short-term loan guaranteed by securities is almost completed.
“It’s just missing details,” official sources warned. Close to the Minister of Economy Luis Caputo, They confirmed that $7 billion was offered, but do not believe they will accept more than $3 billion. “The payment was always guaranteed. If not, we would not have a country risk of 570 points,” they added at Treasury Palace, referring to the confidence that exists in the market.
The final repo figure would depend on how the other sources of funding the government is eyeing ultimately serve to pay off the upcoming maturity of private debt. To this combination are added the issuance of Bonar 29 carried out weeks ago, the purchases made by the Treasury itself, deposited in its account at the Central Bank (BCRA), and the foreign exchange that would be deposited for the concession of the Comahue dams.
“We will try to ensure that there is no transmission in New York in January. The goal is to eliminate the country’s dependence on Wall Street,” The Minister of Economic Affairs declared days ago that he would reject the return to the market in order to counteract the impending expiry. It was an answer to a Dealer who had asked him about the possibility of a bond issue in January.
THE NATION He then jumped into the public conversation and asked, “Why do we need to eliminate dependence on Wall Street?” The minister specified: “Because without a more developed internal capital market, it is very difficult for a country to grow sustainably over time.” The head of the Treasury Palace then added: “This is a key point in the medium and long term. And this government, beyond dealing with the short-term situation, is trying to lay the foundations so that this phase of growth is long-term.”
The official had stated days ago that the country had a debt of 25 points to GDP. About 13 points are in pesos, another 12 points are in dollars. “We must eliminate Argentina’s dependence on Wall Street and pay it more and more” He clarified and said that this Tuesday the debt points of this financial center reached between 4 and 5 points of the product.
“There is no capital market (…); 70 years of fighting capital and denigrating credit; if you fight against capital, it goes somewhere else, because there they don’t fight capital, they seduce it; if you demonize credit, you have no credit; if you take away the AFJP, there is no capital market. We are trying to rebuild the capital market. As part of the labor reform The FAL is fueling a new capital market; “There are $4,000 million per year that will feed the capital market,” Caputo said at the time, adding to this combination the tax innocence bill so that “Argentinians have credit from Argentinians.”
“The government has always strived to be able to finance itself on Wall Street. The reason why the discourse is now changing.” “That’s probably because Wall Street doesn’t want to lend to him.” questioned the former Minister of Economy Martín Guzmán in the same chain of posts in X.
The latest report from Suramericana, Guzmán’s consulting firm, states this “The country became increasingly dependent on financing from international organizations: while in the first quarter of 2018 23% of external debt was declared by these ‘privileged and favored creditors’, in the third quarter of 2025 they already represented 58.6% of the total.”
According to this consulting firm The current sovereign risk level is approximately 70 points above what the country had when it regained access to debt markets in July 2016 and approximately 270 points above the Latin American countries sovereign risk (EMBI+ LATAM), which would allow the country to access international debt markets at a financing cost of 7.25%.
“As for the idea of not issuing in New York these weeks, one could say at this point that, given bond yields, this is almost not an economic policy decision, but rather an imposition of reality (unless the country would be willing to issue very short securities or at a double-digit interest rate),” agreed the consulting firm 1816 in its latest report.
“Currently, the Ministry of Finance has foreign exchange deposits in the BCRA amounting to US$1,869 million. This is the result of the recent issuance of Bonar 29 and the net purchases of foreign exchange it has made in the market and/or the Central Bank. In other words, approximately US$2,350 million would remain to meet maturities.” It has not been made public when the $700 million for the privatization of the Comahue dams will arrive in state coffers, but even assuming it arrives in the coming days, There would still be a shortfall of around $1.65 billion,” They stated this in their report published the day after Christmas.
A clarification is in order, in the next few hours a decision will be published in the Official Journal that opens the final step for the allocation of the dams and thus allows the deposit of the dollars.
Regarding the dollars that the Treasury holds in the BCRA, it is recalled that in the last days of December some currencies were sold in order to contain the exchange rate. “$900 million volume in wholesale (currency + MEP) with upward pressure on FX (exchange rate). Treasury + BCRA must have been motivated to support FX today.” Economist Gabriel Caamaño said this a few hours ago, alluding to possible Treasury sales. However, other analysts suggested that the Treasury could have done so instead of selling They focused on purchases in anticipation of the next debt repayment, which ultimately led to the dollar gaining value at the close.
About The Author
