New Month Brings Relief to Public Finances

A new month begins today for public finances, with a moderately loaded repayment calendar compared to its predecessors.

Dinar-Denominated Debt Repayment Schedule

Three key dates are on the agenda:

• BTC 13 weeks, May 2, 2024: 448 MTD
• BTC 26 weeks, May 24, 2024: 177 MTD
• BTC 13 weeks, May 29, 2024: 41 MTD

The main deadline is today. On the resource side, the Treasury will recover 96 MTD today after the auction of BTC 52 weeks, May 2, 2025, and 150 MTD after the issuance of BTA 8% November 24, 2025.

Treasury's Strategy

In our opinion, the Treasury will not schedule many issues in May. Moreover, the BTC 52 weeks, May 2, 2025 issuance, which will take place today with a target amount of 10 MTD, could be declared unsuccessful. The Treasury's current account shows a surplus balance of 1,566 MTD as of April 29, 2024, higher than its historical average. All efforts will be focused on the success of the second tranche of the national loan, which will start next Monday, May 6, 2024.

Other Key Payments

This month will also see the payment of a tranche of the syndicated loan in foreign currencies with local banks for 16 MEUR and 5 MUSD.

External Debt Repayment

Regarding external debt, and referring to the calendar published in the 2024 Finance Law report, there will be a repayment of a tranche of the IMF's rapid financing line for 25.6 million dollars.

A Breather for Public Finances

This month brings relief to public finances after a fiery start to the year. The overall picture suggests that direct financing from the Central Bank will not be solicited in the coming months. The market will continue to be the primary source of funding for the Treasury.