The Finance Team explained the Agreement with the IMF to the local and international Market
The Minister of Finance, Luis Caputo, highlighted that the loan covers the financing needs until the end of President Mauricio Macri’s Administration.
The Minister of Finance, Luis Caputo, together with the Chief of Cabinet of the Ministry of Finance, Pablo Quirno, and the Secretary of Finance, Santiago Bausili, held a meeting with brokers, insurance companies and mutual funds, to give more details on the agreement with the International Monetary Fund (IMF). Later, they held a conference call with more than 500 international investors.
Within this framework, Caputo highlighted: “The agreement has exceeded every analyst’s and markets expectations; we have USD 50 billion plus the USD 6.65 billion of the Inter-American Development Bank (IDB), the World Bank and the CAF, which erases any uncertainty whatsoever on the economic plan and the market situation”.
This way, Mr. Minister explained that the agreement “accelerates primary balance without disruptions”. Likewise, he said that the Argentine Central Bank reinforces its autonomy and improves its balance sheet, because there will be no more financing to the Treasury and it will begin to reduce the number of Lebacs”. “Finally, the financing issue is solved, because the package is big enough to meet the financing needs until the end of President Macri’s Administration”, he added.
Regarding Lebacs, Mr. Minister said: “While the Treasury is being financed in pesos or dollars in the local market, we are going to buy non-transferable bonds to the Central Bank, which, at the same time, will reduce the stock of Lebacs. Thus, the Treasury cancels the debt inside the public sector, buying debt to the private sector”.
Likewise, Caputo said: “The Central Bank will continue to be in charge of the monetary intervention policy”. “From the Ministry of Finance, and through Banco Nación, we are going to sell only the surplus of dollars to cover deficit”, he concluded.
The following officials also attended the event: the President of the Argentine Bolsa de Comercio, Adelmo Gabbi; the President of Bolsas y Mercados Argentinos (BYMA), Ernesto Allaria; the broker José Cirillo; the Manager of Development of Capital Markets of Bolsa de Comercio, Claudio Zuchovicki; and the President of the Argentine Chamber of Mutual Funds, Valentín Galardi.