Senator Enrique Martinez of the PLD opposes the Senate passing the Sovereign Bonds. He called the mechanism very expensive and lacking transparency. Unlike World Bank and IDB funds, no tenders need to be held and the government can use the bond money to cover its deficit and excessive payroll. “If finally Congress passes the law of the bonds, we will be immersed in a pool that will be very difficult to get out of,” he said. He estimates the country will need to make US$80 million in annual interest payments for the bonds, at around 15% interest (Argentina recently purchased bonds at 15.29%). The Senate meets on Tuesday to start studying the bonds bill.
