January 7, 2020. The Board of the BCRA approved the motion to change the criterion for calculating the book value of Non-transferrable Bills—in accordance with Section 62 of Law No. 27,541 on Social Solidarity and Recovery of Productivity and within the framework of Public Emergency.
Holdings of Non-transferrable Bills and of such Bills that may be issued in accordance with the law referred above are to be recorded in the BCRA’s financial statements at technical value.
As a result of the implementation of this valuation criterion, Bills reached $3,003,389.8 million by December 31, 2019, as explained in the Summary Statement of Assets and Liabilities as of that date.
Since Non-transferrable Bills became part of the BCRA’s equity, they have been reflected in the balance sheet at technical value based on its financial capacity and intention of keeping them until maturity. This criterion was amended by the former administration based on the agreement they reached with the IMF in June 2018, which provided for early payment. However, no prepayment took place. As established by Law No. 27,541, the original valuation criterion is adopted anew.
The BCRA does not use Non-transferrable Bills to conduct open market transactions for monetary regulation. The securities used for this purpose are recorded at market value.