|
 |
|
|
  |
Operations performed on the international market are globally oriented and have the following
objectives:
| • |
to maintain a presence on the most liquid international financial markets; |
| • |
to create lower cost reference curves to meet public and private borrowing needs, and |
| • |
to perform operations aimed at lengthening maturities and to reduce external liability costs. |
About the responsibilities of the National Treasury issuing external debt, the Federal Senate
approved Resolution N° 20 of November 17, 2004 (the Constitution establishes that the Senate is
responsible for regulating public debt of all levels of government).
Senate Resolution N° 20 dealt with the “Program of Security Issues and Management of National
Treasury Liabilities Abroad”, which made the Ministry of Finance explicitly responsible for all
stages related to issuance of external public securities.
Senate Resolution N° 20 replaced Senate Resolution N° 57, dated 1995, which dealt with new
external issues, and Senate Resolution N° 69, of 1996, which dealt with external debt
restructuring operations. As such, it established a new limit of US$75 billion on issues of
external securities by the National Treasury. It also relaxed constrains on the destination of
resources obtained from external issues. In the past, these resources could be used only to
redeem domestic debt securities. Now, they may be used for paying both domestic and external
debt for which the National Treasury is liable.
Resolution N° 20 also struck a balance between the flexibility required for effective the
Federal Public Debt management and macroeconomic considerations, including the avoidance of
excessive exposures. Financial derivatives, for instance, were allowed for the purpose of
managing risk to the public debt.
|
|
 |
|
|
|
|
|
