Debt: the Government tries to clear the financial uncertainty

The Government presented yesterday its financial program for 2019 and 2020. There it assures that it already has sufficient funds to fulfill all its commitments this year and that it is well prepared for 2020.

During 2019, the Government needs US $ 21,000 million, according to the Ministry of Finance. In turn, it has US $ 22,500 million contributed by the International Monetary Fund (IMF). That would leave him enough room to make his payments.

“The Treasury will have a surplus position in dollars during 2019. The mechanism for the conversion of the dollars needed to meet expenses in pesos will be announced during the first quarter of 2019,” the ministry said.

Different sectors indicate that the country could have problems to pay its debts of 2020. The Ministry of Finance refuted this point. “The higher initial cash balance as a result of a greater refinancing of maturities in 2018 to the originally planned one implies that the need to refinance short-term maturities was reduced to 46%, in contrast to the 60% originally planned,” they highlighted. .

The improvement of the profile allows facing 2020 with another strategy. “If the refinancing of short-term maturities in 2019 were equal to or greater than 70%, the accumulated cash balance at the end of the year will eliminate net financing needs by 2020,” they said.

The expirations of 2020 will be around US $ 25,900 million. The Treasury has the US $ 5.9 billion from the IMF. It aims to obtain US $ 15,200 million in the domestic market: US $ 10,500 million through the refinancing of debt and US $ 4,700 million through issuances.

“The PPP projects will not require financing from the capital market in 2019. Financing will be minimized to meet the investments of the coming months.” Reducing the financing needs allows recourse to alternative financing sources such as banks and multilaterals, “said Hacienda.