Guzmán calls a mega swap in pesos to kick payments of $ 500,000 million

These are titles that expired until June. Modifications were made to avoid repeating the low level of adherence of the last attempts

Minister Martín Guzmán called for a mega swap of the debt in pesos, through which he intends to postpone payments of $ 500,000 million due until June 21.

The proposal came amid turbulence in the markets due to the coronavirus pandemic, which led to the collapse of Argentine debt securities.

The auction is scheduled for Thursday and is aimed at clearing the fiscal front, just at a time when the greatest fear is that the massive cancellation of peso securities could put additional pressure on the inflationary process.

Among the instruments there are eight Lecap series, three Lebad, a discounted letter and the Botapo. The list includes papers that had entered the forced reprofiling of the macrista management.

The proposal to creditors sought to avoid the setback of previous exchange attempts, which had led to very low levels of adherence by investors who did not see value in the official offer.

That is why changes were made from Decree 193, which allows the Government to make calls to holders of eligible securities that expire in 2020 for the conversion of assets to their technical values ​​at the settlement date, for new ones. This rule opened the way for institutional investors not to have to recognize losses for their holdings in relation to how they are recorded in their balance sheets, beyond the fact that it implies discounts in relation to the punished market values.

Holders of these instruments may choose any of four bonds, with which the maturities would be postponed, at least, until 2021.

These are the reopening of the BONCER 1% with maturity on August 5, 2021, placement price $ 1048.70 for each $ 1000 of nominal value; the reopening of BONCER 2022, expiring on March 18, 2022, placement price $ 1004.16 for every $ 1000; a new BONCER plus 1.4%, with maturity March 25, 2023, placement price $ 1000 for every $ 1000; and another BONCER plus 1.5%, as of March 25, 2024, placement price $ 1,000 for every $ 1,000.

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