The Argentine Republic is undergoing a process of unprecedented debt reduction under the administration of Javier Milei. The National Government has managed to reverse the suicidal trend of the previous administration, reducing the total public debt from a staggering 156% of GDP (specifically 156.56% reached in December 2023) to a solid 69.9% recorded in April of this year. This drastic drop represents the success of the financial cleanup plan that aims to definitively distance the country from the specter of default and fiscal negligence.
The Minister of Economy, Luis "Toto" Caputo, confirmed that this progress is part of a methodical plan to restore the balance sheet of the BCRA, which had been devastated by the use of reserves to finance the Treasury's deficit. According to the official, "WE CONTINUE TO LOWER PUBLIC DEBT", a statement supported by the recent cancellation of non-transferable notes held by the Central Bank for a nominal value of USD 22.284 billion. This strategic operation allowed for an estimated reduction in the debt stock relative to GDP of 3.3 p.p. just during the month of May.
To achieve this management milestone, the National Treasury used two mechanisms of genuine financing, avoiding resorting to the spurious monetary issuance that characterized the past:
A repurchase using $18.4 trillion from the profits that the BCRA transferred to the Treasury from the results of the 2025 fiscal year.
