BUENOS AIRES, June 18 (Xinhua) -- The Argentinean Ministry of Finance on Monday issued two new government bonds worth 4 billion U.S. dollars.
A statement said that the first instrument will last for a year, expiring in June 2019 and will accept subscriptions in pesos or dollars. This mechanism will pay out monthly interest in Argentinean pesos.
The second instrument will be at a fixed rate and will last two years and five months, expiring on Nov. 21, 2020. The interest will be paid out twice a year at a nominal annual rate, to be defined through a public tender.
These two new instruments are the first to be emitted since the resignation of the central bank (BCRA) President Federico Sturzenegger last Thursday and his replacement by the Finance Minister, Luis Caputo.
Sturzenegger's resignation happened as the peso continued to depreciate, reaching a historic high of 28 pesos to one U.S. dollar, as well as market confusion about the extent of the central bank's participation in the exchange market.
Argentina's Treasury Minister Nicolas Dujovne, said last week the government would offer 7.5 billion U.S. dollars from an International Monetary Fund (IMF) loan on the local market, while using an undefined portion of the loan to strengthen the central bank's international reserves.
The IMF loan to Argentina will last 36 months and will be paid in installments, beginning on June 20. The first share will see Argentina receive 30 percent of the total, or around 15 billion U.S. dollars.
