Argentina records 78% creditor participation in significant public debt swap

The Argentine government announced on Thursday that they had secured the participation of 78% of creditors in a major treasury debt swap set for the third quarter, consequently reducing obligations by 7.4 trillion pesos (about US$30.29 billion as per the official exchange rate), as reported by the Ministry of Economy.

Argentina’s Economy Minister, Sergio Massa, lauded the outcome of this financial maneuver executed by the Finance Ministry, emphasizing its historical significance as Argentina’s largest domestic market maturity swap.

Massa explained via his Twitter account, “Through this maneuver, we’ve managed to decrease approximately 7.4 billion pesos of scheduled payments for June, July, August, and September. The 78% acceptance rate was the highest ever achieved by our administration.”

The debt securities swapped by the government included dual currency bonds, a dollar-linked bond, peso bonds, and Treasury Bills tied to inflation, all maturing between June and September of the current year.

These securities were exchanged for three new dual currency bonds, two set to mature in August and November 2024, the third in January 2025, and a new inflation-linked bond (BONCER) due in December 2024.

The issuance of the dual bonds amounted to over $23 billion, and the BONCER summed up to roughly US$9 billion, according to the official statement.

Upon the successful conclusion of the swap, Minister Massa appreciated both public and private sector participation in the transaction.

“We commend the overwhelming support from the public and private sectors, particularly long-term institutional investors like financial institutions, which showed a participation level of 90%,” the minister stated.

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