US EditionBCRA Closed a $2 Billion Loan with Foreign Banks and Took Other Steps to Strengthen Reserves
22 Articles
22 Articles
The government of Javier Milei deploys a range of measures in search of dollars to support its economic plan. After obtaining last April a ransom of 20 billion dollars from the International Monetary Fund (IMF), it announced new debt takeovers that could reach 7 billion this year, as well as the easing of controls on the income and outflow of foreign exchange. The explicit purpose of the Executive is to reach the level of international reserves …
The Central Bank (BCRA) announced that it will seek to add more international reserves through new debt and that from the end of next month it will resign its power to set a monetary policy interest rate, which will become determined by the market “in line with a regime centered on monetary aggregates”.
In addition to confirming the REPO loan, the Central Bank will issue next week a dollar bond for foreign company dividends
After signing a $2 billion credit, it will issue seven securities, one of which will be subscribed in dollars and paid in pesos.
“Just so far this year we’re going to need to raise about $2 billion to guarantee that provision. It’s not just about looking at August, but also foreseeing a possible second round and ensuring stability...
The government received a loan with an interest rate of 8.25% per year, for a period of 2 years and 4 months, granted by seven private banks. In exchange, the BCRA will deliver Bopreal bonds as collateral.
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