Argentina swaps $1.66 billion Treasury bills to push back debt repayment

Argentinian economy ministry said that it exchanged 99.6 billion pesos ($1.66 billion) Treasury bills in a debt swap auction to postpone its repayment schedule amid an economic crisis.

The ministry conducted an auction for two new peso-denominated bills to holders of five older instruments, with which the government has near-term repayments in February adding up to $2.44 billion.

The debt swap will cause a part of the repayments postponed until Sept. 18 and Dec. 22.

Argentina is looking at restructuring its local and foreign debt. President Alberto Fernandez said that the country cannot afford to pay the debt as the government currently seeks to stimulate the country’s stalling economy and to raise funds.

The new debt has a nominal value of 83.35 billion pesos ($1.39 billion) with the payment deadline on the debt’s maturity. The government issued 47.6 billion pesos of the 335-day bills and 35.7 billion pesos of the 240-day bills.

The new debt that matures in September has a yearly interest of the Badlar rate for deposits at Argentinian private banks plus 400 basis points, while the debt maturing in December has an interest of Badlar plus 550 basis points.