Power companies in the AGEERA electricity generators’ association have rejected Economy Minister Luis Caputo’s proposal to use bonds to pay power wholesaler CAMMESA’s debt of over US$1 billion. On Wednesday, the Government formalized the regime to pay CAMMESA’s debt to generator companies via resolution 58/2024 of the Energy Secretariat, which was published in the Official Gazette. The government’s proposal, conceived by Caputo, consists of paying the debt for energy subsidies — with a 50% write-off — via a dollar-denominated bond, the AE38. The debt totals AR$1,100 billion (US$1.2 billion at the official rate, US$1 billion at the MEP rate), the resolution says. You may also be interested in: Sparks fly: Argentina offers to pay energy companies in bondsWithin hours, the Association of Electric Energy Generators of the Argentine Republic (AGEERA, by its Spanish initials) sent a letter to the Economy Ministry listing seven reasons it was rejecting this form of payment.

Source: Bueno Aires Herald May 08, 2024 21:37 UTC