Local Debt Service Returns with Force
After a quiet September, the local debt service is back in full swing. In terms of dinar-denominated repayments, the total amount stands at approximately 1,565.4 billion dinars, broken down as follows:
- BTC 26 weeks 11/10/2024: 55.4 billion dinars
- BTC 52 weeks 16/10/2024: 610 billion dinars
- BTC 52 weeks 22/10/2024: 900 billion dinars
In addition to local debt denominated in dinars, there is also foreign currency-denominated debt. The Treasury will need to pay 180 million euros and 13 million US dollars, equivalent to 649.72 billion dinars.
To meet these commitments, we believe that refinancing operations will be necessary for all these amounts. An auction for 100 billion dinars in BTA (short-term treasury bills) has already been scheduled for October 2. It is not ruled out that a new syndicated loan in foreign currencies will be contracted with local banks in the coming weeks to cover this operation.
On the external debt front, there is the Japanese bond debt that will be repaid on October 10 (JP578801AEN2) for 50 billion yen, equivalent to 1,062.49 billion dinars.
There is also a tranche of the IMF credit under the 2016-2019 program (25.6 million US dollars) and another under the rapid financing during the health crisis (90 million US dollars), equivalent to 351.424 billion dinars.
In total, the Treasury will have a tough month to manage, with over 3,649 billion dinars to repay. The local financial market is capable of meeting these needs, and foreign exchange reserves, standing at 25,534 billion dinars, will allow all maturities to be respected without any difficulty.
