LatinNews Daily - 27 February 2020

*Argentina’s economy ministry has reported that it has placed a total of Ar$9.2bn (US$148m) worth of new bonds in the domestic market in two separate debt swap operations. This result is negative given that the government is looking to restructure its short-term domestic debt repayment schedule by swapping Ar$96bn of the over Ar$220bn in bonds expiring in March for new bonds with longer maturities and lower yields. However, demand for a new sovereign bond offering a return of 32.88% and maturing in 2021, and a treasury bond (Lebad) offering a return of 43.49% and maturing in August was limited, with only Ar$6.86bn of sovereign bonds taken up and Ar$2.35bn of Lebads. The government has so far managed to swap only Ar$17.2bn worth of bonds, 18% of its target, as confidence in the government led by President Alberto Fernández and its ability to successfully renegotiate the country’s external debt and resolve the domestic economic crisis appears to wane. Notably, the economy ministry announced that it was increasing its proposed Lebad bond issue by Ar$5bn in a bid to raise additional funds.    

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