The new five-year instrument replaces 60 percent of the seventh interest coupon payment due June 30, 2026, on the “Non-Transferable Treasury Letter in US Dollars Maturing December 30, 2032,” originally issued through Resolution 1043/2022. The original letter was created under Decree 787/2022 as part of the Treasury’s rollover framework with the BCRA.
The newly issued letter carries a five-year term with full capital amortization at maturity. Interest accrues at a rate equal to what the BCRA earns on its international reserves, capped at the one-year SOFR TERM rate plus an adjustment margin of 0.71513 percent minus one percentage point, applied to the subscribed capital amount. The placement occurs directly with the BCRA without market intermediation.
The resolution confirms the transaction falls within the limits established in the annex to Article 44 of Law 27,798, which authorizes the coordinating body for financial administration systems to conduct public credit operations according to specified amounts and financing purposes. The Secretaries of Finance and Treasury jointly exercise functions as the responsible body for coordinating systems within Argentina’s National Public Sector Financial Administration, as established by Decree 1344/2007 as modified by Decree 820/2020.
The mechanism underscores Argentina’s continued reliance on internal debt restructuring with its central bank to manage fiscal pressures while preserving limited cash resources for other obligations. The deferral extends payment timelines by five years from the original coupon due date.
This article was curated and published as part of our South American energy market coverage.
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