The National Government withdraws funds from the National Institute for Retirees and Pensioners
Argentina, December 30, 2010
The Government, through the executive power, ran the issuance of two treasury bills for a total of 2,330,000,000 pesos from the National Institute for Retirees and Pensioners (PAMI).
In the last labor day of the year for the public administration, because tomorrow was declared holiday, the Government made two joint resolutions that are signed by Carlos Pezoa, Finance Secretary and Hernan Lorenzino Secretary of Finances.
The bonds have terms of between 90 and 180 days. By November, the Government place 500 million pesos in the PAMI.
This maneuver was performed to pay the external debt maturities in 2011. The reservations that they are using are the so-called “Free Reserves” of the excess dollars left after covering the country’s monetary base.
Bond issues in state agencies are a recurring method of financing the central government.