Argentina buys $600 million from Central Bank for July 9 bond payment

Argentina's National Treasury significantly boosted its dollar reserves by acquiring $613 million from the Central Bank (BCRA) on Wednesday. This transaction increased the Treasury's dollar deposits from $3.068 billion to $3.681 billion. The funds were transferred from the Treasury's own deposits within the BCRA, totaling $859.426 billion.

This strategic acquisition is intended to ensure the necessary funds are available for the upcoming payment to bondholders on July 9, covering both principal and interest on the Bonar and Global bonds issued from the latest debt restructuring. This move brings the government closer to meeting its commitment, with current reserves covering 84.6% of the approximately $4.350 billion due.

Further bolstering its financial position, the government is also looking to issue an additional $366 million of the Bonar 2028 bond this Friday. This issuance, part of a larger plan to refinance over $16 trillion in peso-denominated debt, aims to increase coverage to over 93% for the immediate payment. The government's intention, according to the consultancy 1816, is to use its own resources for this immediate external payment while reserving guarantees from multilateral organizations for future, lower-cost emissions.

In parallel, a decree published in the Official Gazette (BO) authorized public debt operations up to $5 billion. This decree also extends jurisdiction to New York courts for contracts associated with these operations, signaling a move towards aligning with international financial practices.