Finally the Decree of Necessity and Urgency that formalized the exchange of bonds in dollars for titles in pesos was known announced yesterday from the Ministry of Economy. This morning there was a meeting with the main references of financial institutions to discuss the details of the provision.
The Executive Branch confirmed the measure through decree 163/2023, which consists of only four articles.
The authorities point out that given “the urgency in adopting this measure makes it impossible to follow the ordinary procedures provided for in the National Constitution for the enactment of laws.”
“Payments of interest services and capital amortization of bills denominated in US dollars issued under Decree Nos. 622 of September 17, 2021, 576 of September 4, 2022 and 787 of November 27, 2022 They will be replaced, on their expiration date, by new public securities whose conditions will be defined jointly by the Ministry of Finance and the Ministry of Finance, both dependent on the Ministry of Economy.“He begins by saying the text.
In addition, aspects are detailed about how the scheme with which the Minister of Economy will Sergio Massa and his team seek to contain the quotes of the free dollar and the financial ones.
The decree recalls that through article 3 of Decree No. 622/21 authorized to issue bills denominated in US dollars for US$ 4,334 million Ten-year term with full amortization at maturity, fully or partially pre-cancellable.
And it was established that these letters would accrue an interest rate equal to that accrued by the international reserves of the Central Bank for the same period and up to a maximum of the annual LIBOR rate minus one percentage point.
In turn, it lists a long list of decrees and resolutions that support what was finally decided: The decree provides that the public bodies involved in the exchange “must subscribe national public titles payable in pesos to be issued by the National Treasury“for an equivalent amount”70% of the produced that they receive from the sale operations of their holdings of securities in dollars”.
In relation to the remaining 30% of what the state departments receive, it is provided that “It must be used in expenses, investments and/or financial applications within the objectives, goals and activities of each organization during the 2023 budget year.including the financing of productive investments and credits that promote internal consumption”.
The Ministry of Economy will be in charge of preparing “the list of the Jurisdictions, Entities and Funds covered by this decree, and will issue the complementary and clarifying regulations that are necessary for compliance with this measure.”
The DNU, which must be endorsed by the Permanent Bicameral Commission for Legislative Processing of Congress, bears the signature of Alberto Fernández and the entire national Cabinet of Ministers. Meanwhile, the measure will formally enter into force as soon as it is published in the Official Gazette, it is presumed in this Thursday’s edition.
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