The Minister of Economy announced that the operation will be for one billion dollars, in the midst of a sustained rise in the currency in the parallel market.

The Minister of Economy, Sergio Massa,announced on Wednesday the Government’s decision to open a “process of foreign debt repurchase Argentina for more than billion dollars” with the aim of calming the markets, in the midst of a sustained rise in the dollar in the parallel markets that yesterday reached a new nominal record.

“We saw a drop of a thousand points or more in the country risk in Argentina and it is a window. That is why we have made the decision to carry out a process of foreign debt repurchase Argentina for more than one billion dollars that begins today,” Massa said.

And he added: “We have made the decision in a joint resolution of the Ministry of Finance and the Treasury to entrust, for greater transparency, the Central Bank that on behalf of the Treasury carry out this repurchase process to continue lowering the country risk, which improves the possibilities Argentine companies and the Argentine State to access the capital market”.

The head of the economic portfolio specified that it is “a first step of one billion dollars, very focused on global (bonds), especially those of short maturity, 29 and 30″ when arguing that it is there where it is necessary to “attack for the best administration of the debt, the profile of debt and the profile of maturities of Argentina”.

“Surely, over the next few months, we will be also inviting the private sector to accompany the Argentine State in this work to improve our profile is that we carry out other measures like the one we are taking today,” the official said.

In this sense, Massa said “I want to invite you all to work so that the improvement in the profile of Argentina’s debt allows us all to return Argentina to a place of participation in the capital market.”

Massa insisted in his announcement that the marking decrease in country risk in recent months represents “a window of opportunity for Argentina”.

Currently, the indicator prepared by the private bank JP Morgan and evaluates the risk that lending money to each country implies for foreign investors, is in 1,881 basis points, its lowest mark since last May 11.

The announcement comes amid a sustained rise in the blue dollar, which on Tuesday had reached a nominal record of $378, after rising 8 pesos in one day fact that began to generate concern in the Ministry of Economy.

Although the price is still behind inflation, the feeling in Massa’s team is that the 8 consecutive climbs outline a more “complex” summer due to the lack of foreign currency, the collateral effect of the soybean dollar and a limited margin of maneuver. “The blue keeps going up, it’s easier to go up than to go down, there are no sellers and everyone buys, the one who goes to Punta prefers to buy dollar bills, it is cheaper than Qatar,” they said in an official dispatch.

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