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Economy Ministry Plans to Use Energy Savings to Fund Bond Buyback

ARGENTINA
  • According to people with direct knowledge of the matter, the Argentine government is reportedly planning to use dollars held by the Treasury to fund a $1b global debt buyback that was announced by Sergio Massa earlier today.
  • The Economy Ministry is planning to use money that it expects to save from energy imports that it presumes won’t be need in 2023. The ministry expects to spend less on energy imports than originally projected in the 2023 budget.
  • Analysts remain sceptical regarding the decision with Portfolio Personal Inversiones commenting that “net reserves are hovering around $6.08 billion, so this first phase of the program would consume 16.4% of this scarce stock.”

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