The Minister of Economy, Luis Caputo, presented a financial program to address debt maturities until 2027 without relying on international issuances
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The Minister of Economy, Luis Caputo, presented on Tuesday the financial program that the Government will use to face the significant debt maturities expected until 2027, and left a clear message to the market: Argentina does not need to return to issuing debt in international markets to sustain its economic program.
During a press conference, the official explained that the scheme was designed with conservative criteria and includes multiple financing alternatives, although he clarified that issuing debt abroad is not part of the Government's immediate objectives.
"Going to the markets is an option, not a goal", Caputo stated.
A financial program with room to meet maturities
The minister explained that the plan incorporates different sources of financing that allow for comfortably covering the needs expected for the next two years.
According to the details provided by the Secretary of Finance, Federico Furiase, the financing needs amount to USD 19.2 billion, while the secured sources reach USD 22.9 billion, creating a financial cushion of USD 3.7 billion.
A financial program with room to meet deadlines
Among the main sources anticipated are:
USD 6.7 billion from dollar purchases from the Central Bank.
USD 4 billion through loans guaranteed by international organizations.
USD 2.8 billion in disbursements from the World Bank and the Inter-American Development Bank.
USD 6 billion in local issuances, of which USD 4 billion have already been placed through the Bonar 2027 and Bonar 2028 bonds.
USD 800 million from the privatization program.
USD 800 million corresponding to the rollover of the public sector.
The drop in country risk strengthens the official strategy
One of the main arguments of the economic team is that the macroeconomic fundamentals achieved during Javier Milei's administration allow time to work in favor of Argentina.
In this regard, Caputo highlighted that the country risk has fallen to 415 basis points, the lowest level since 2018 and a new minimum since the current administration began.
Financial Program 2027
The minister stated that this improvement allows for expecting much more favorable financing conditions than those available months ago.
"The rate at which the country finances makes a big difference; it is not the same to do it at 6% over ten years as at 12.5%, as would have happened previously", he explained.
The goal is to avoid a hasty return to the markets
The program aims to clear doubts about the Treasury's ability to pay in the face of maturities exceeding USD 30 billion between mid-2026 and late 2027, including commitments with private creditors, the International Monetary Fund (IMF), the Paris Club, and obligations with the Central Bank.
Far from accelerating a new international debt placement, the Government maintains that the priority is to continue strengthening macroeconomic variables, consolidate the reduction of country risk, and eventually access external financing only when conditions are fully favorable for Argentina.
A scheme backed by international organizations
The financial program also includes guarantees obtained with the World Bank and the Inter-American Development Bank, in addition to the restructuring of financial operations with international banks.
From the Ministry of Economy, it is emphasized that this is a scheme designed to offer predictability and face different scenarios without compromising the stability achieved since the beginning of the administration.
For Javier Milei's economic team, the combination of fiscal balance, financial surplus, accumulation of reserves, and lower country risk constitutes the foundation for Argentina to leave behind the dependency on permanent indebtedness and consolidate a sustainable long-term recovery.
