Colombia TES auctions done for 2014; swap, pre-finance questions begin

miércoles 27 de agosto de 2014 17:31 GYT

By Nelson Bocanegra

BOGOTA Aug 27 (Reuters) - Colombia completed its program of local debt sales sooner than usual this year, leading some analysts to speculate on Wednesday that the government may have room to pre-finance some of its 2015 spending or swap short-term debt for longer maturities.

The finance ministry issued local Treasury bonds, known as TES, that mature in September 2019, completing its programmed debt auctions of 19.3 trillion pesos ($10 billion) for 2014.

TES are the second biggest source of government financing after taxes.

"Today we completed the auctions established in the 2014 financing plan," Michel Janna, head of the government's public credit office, told Reuters. He declined to say whether the government would take advantage of the remaining months of the year to pre-finance the 2015 budget.

"There's no news on that," he said.

Still, the government in June raised the amount it planned to sell of local debt this year by almost 3 trillion pesos so it could pre-finance 2015 first quarter financing needs.

The monthly auctions usually run at least until November, leading analysts to wonder how the government will use the remainder of the year to manage its debt.

"That's the discussion going forward, the possibility of pre-financing is open," said Juan David Ballen, fixed income strategist at brokerage Casa de Bolsa.   Continuación...