Argentina government places US$2.067 billion in new debt

The Argentine government raised 285.901 billion pesos (about US$2.067 billion at the official exchange rate) in new local currency debt in its latest bond offering in August.

According to the Economy Ministry, the South American country has tendered four new financial instruments maturing between September and June 2023 at interest rates starting at 56 percent.

A peso-denominated Treasury bill maturing on Sept. 30 and bearing interest at 56 percent was tendered Monday, and a Treasury bill maturing on Dec. 16 of this year and offering a yield of 75.34 percent was also awarded.

A peso-denominated Treasury bill maturing on Jan. 31, 2023, and offering a yield of 77.04%, and another inflation-linked bill maturing on Jun. 16, 2023, were also tendered.

Local currency bond transactions allow the Argentine government to inject pesos into the economy to minimize pressure on the exchange rate.

The Argentine government also resorts to the domestic financial market, as it does not have access to international credit markets.

On Aug. 9 this year, after Economy Minister Sergio Massa took office, the Argentine government managed a successful debt swap for two trillion pesos, equivalent to US$15 billion.