The Macri administration plans to issue a debt of US $43 billion in 2017. It started the process January 11th, when it issued US $1.5 billion in debt in the form of two different treasury notes. One for US $1 billion that has to be paid for in April and the other for US $500 million that expires in July.
Finance Minister Luis Caputo decided to continue with the plan today, issuing a debt for AR $17 billion, roughly US $1.05 billion at today’s exchange rate. However, this time he resorted to a different method of raising the money. Instead of going to international lenders, he decided to save the trip and borrow the money from the state-run pension fund Anses.
According to Infobae, the reason for the move lies in the large amount of money the entity ran by Emilio Basavilbaso has right now. Specifically that AR $100 billion has entered its coffers due to the tax amnesty law, which so far has seen over US $90 billion declared to the Government.
Those resources are just a small part of the roughly $20 billion dollar fiscal deficit the Government is planning to carry this year. The rest of the US $43 million will be destined to refinance existing debt. While this is in no way a small percentage of Anses’ total funds — this administration is not the first take a loan from Anses in order to finance their agenda.
The entity’s last financial report, issued on September 30th, stated that it lent the Government AR $530 billion, a number that represented two thirds of its total holdings. With this new loan, the figure will be bumped to almost AR $550 million.