Overview
- Funds were transferred to Bank of New York Mellon to pay holders of Global and Bonar bonds from the 2020 restructuring, covering roughly $4.2–$4.3 billion due.
- The Treasury used about $2.3 billion from its dollar deposits and bought the remaining foreign currency from the central bank, which obtained dollars via the new repo.
- The $3 billion repo runs for 372 days at SOFR plus 400 basis points (about 7.4% annually), is collateralized with Bonar 2035 and 2038, and was awarded to six international banks after $4.4 billion in bids.
- Economy Minister Luis Caputo called the operation a way to “cancel debt,” while economists argued it increases consolidated debt and underscores a ‘disorder of roles’ between the Treasury and the central bank.
- The BCRA said it repaid in December the roughly $2.5 billion previously drawn from the U.S. Treasury swap line, which authorities indicate remains available.