- The issuance calendar published May 10th by the Ministry of Finance does not necessarily mean the issuance of less debt than that authorised in the Budget Act. However, we estimate an effective fiscal deficit of around US$8 billion, which would mean that borrowing required for this year would be US$10.5 billion at most, US$1 billion less than the limit authorised by the Act.
- To the US$7 billion announced as issued in the domestic market will be added auctions of US$2 billion of domestic peso bonds at 5 and 20 years, in which foreign investors can participate directly. After around 22% was allocated to non-residents in the last auction in January, we expect a somewhat higher participation in view considering composition and term of the issuance. This aspect will determine the market reaction to this announcement.
- Additionally, we expect around US$2 billion of debt to be issued in foreign currency, which we expect to be announced in the next few months, most likely in July/August.
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