Buenos Aires, December 11 (NA) – After placing a bond in dollars for the first time in eight years, the markets are now awaiting signals on how the government will face the rest of next January's maturities, for which it needs to obtain another USD 3,000 million. This Wednesday, the Government returned to the market with a dollar bond due in 2029 for USD 910 million, at a rate of 9.26%. “The signal that the operation leaves is that a substantial part of the demand would have been induced by recent regulatory modifications applicable to insurance and reinsurance companies, among others, which raised the relative attractiveness of the instrument,” explained Gustavo Araujo, Head of Research at Criteria, in dialogue with the Argentine News Agency. And he said that “the pending point now is to know how the Government plans to obtain the remaining more than USD 3,000 million necessary to cover the January debt maturities.” The specialist pointed out that the transaction “constitutes a relevant advance towards the normalization of the Treasury's financing.” For his part, Pablo Salina, from UADE, highlighted that there is a scenario of greater financial stability after the intense electoral period. “November combined exchange rate calm, recomposition of expectations and a very dynamic activity in private debt markets,” he highlighted. Among other points of the UADE report, it is highlighted that macro stability and improvement in confidence in the Government, which increased 18% monthly, reversing previous falls, after the electoral triumph. Also the recovery of the EMAE, which grew 0.5% in September and accumulates +5.2% year-on-year. October inflation was 2.4% and implicit expectations continue to project a path close to 2%. And the reopening of corporate credit, since November was the month with the highest volume of ON issuances in the last 10 years, reaching USD 4,000 million from companies and an additional USD 600 million from the GCBA, consolidating renewed access to private financing. IP “November reflected a change in the financial climate: greater stability, reduction of coverage, economic activity in recovery and a reactivated capital market. Even so, challenges persist related to the inflation trajectory, fiscal consistency and the pace of reserve recomposition,” said the report from the Finance Club of the Economics Institute (INECO) of UADE.
