2024-07-17 00:52:00
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The Central Bank (BCRA) formally asked the banks tonight to “cancel” the liquidity options (pan egg) for $17 billion of public securities in positions he sold them so that they do not stop buying debt papers from the Exchequer when they had no demand from the rest of the investors.
He did so through Message “B” 12847 by which he invites them to participate in two “RSTP” rounds of the Siospel system – electronic negotiation – which will open this Wednesday and Thursday at 11 am and close at 4 pm to get set.
The price at which each contract will be terminated “recognizes to the holders of those instruments a value equal to the premium in pesos agreed from time to time, in proportion to the number of days remaining until the end of each contract, and increased according to change on the CER index (adjusted for inflation) from the date it was paid to the settlement date of termination.”
As I hoped a day ago THE NATIONthe official magnifying glass is on pegg known as “Americans”, which cost 76% of the total debt for which this repurchase guarantee is exercisable at any time and under any circumstances, which complicated any kind of progress towards the disarmament of the stocks, since it implies a potential and unpredictable emission of about $13 billion, a figure equivalent to 62% of the Monetary Base (BM).
The rest are “European style” contracts, contracts that are the same as the others but are only enforceable on a predetermined date, allowing better forecasting.
In fact, the BCRA fully establishes in the call sent “that it will be a condition for the elimination of deferred liquidity options (those that can only be exercised in the last month before the maturity of the base), all options regarding liquidity deferred termination at the same time. non-deferred liquidity options held by that entity.”
It means that “They won’t be able to cancel European breaks without canceling all their American stuff first”transfer economist Salvador Vitelli, from Romano Group.
The official offer has not yet secured the full backing of the banks. What if none of them agree to cancel the received liquidity options? LA NACION formally consulted with the BCRA.
– “They will stay with them,” they said.
But the official objective, according to the public definition of President Javier Milei himself, is to end these instruments this week…
“I can tell you that there will be more acceptances than rejections, but among those that accept it, only part of it is being evaluated for cancellation… which we are not clear about whether the BCRA will accept it,” he explained a private banker.
Currently, each bank will be able to upload “one site of its own portfolio” to the system.. That is, they will not be able to work through third parties so that they are identified.
The BCRA would be forced to issue more than $220,000 million, according to market estimates, if they were accepted in their entirety with the “cancel” offer launched.
Of course, by giving up this liquidity option, they must at the same time keep the underlying public securities in their investment portfolios, which some banks are unwilling to do – in the case of securities maturing after 2025 – if they do not . allowing them to do so At the same time, they open an exchange option for other “shorter and more liquid” papers.
To try to pave the way for adoption, the BCRA already available yesterday through the message “A” 8063 said that said bonds, whose holdings are exempt from the prudential funding ceiling for the public sector, are precisely “excluded” from that calculation.
That was already prescribed by that rule “If the bank ends the put, preserves for up to 12 months after the amortization of the protective security part of the attractiveness/usefulness of the put: that is, the covered bond is not calculated in the unprotected limits of the Treasury”, moved the economist Gabriel Caamaño, director of Estudio Ledesma.
So far, LA NACION has been able to find out, from consultations with various official sources, that the Government is willing to combine the operation that will be carried out by the BCRA in the next 48 hours with a call from the Treasury for an exchange. of those papers that Banks should no longer hold, they offer for short-term ones, to reduce the fear that exists among some bankers related to liquidity management.
“The operation will be put in order because the BCRA is responsible for one part but another part is the responsibility of the Treasury,” they admitted, but slipped: “Of course, for the second part to come to fruition, it will have to the first part to be really. worked.”
Conocé The Trust Project
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