Economy Minister Luis Caputo says President Javier Milei’s government has sufficient funds to meet all of this year's debt payments, adding that tapping international markets to refinance future maturities remains "an option.”
Caputo said that from a total of around US$19 billion in repayments, Argentina’s "2026 refinancing requirements are overfulfilled by US$3.7 billion." He described the country's overall debt repayment schedule for 2027 as "less challenging," despite the presidential election set for October next year.
"We are prepared for the worst-case scenario," the minister told a press conference alongside other members of his economic team, acknowledging that the election campaign could increase uncertainty and market volatility.
"Returning to the international markets is another option, not an objective ... the aim is to refinance at the lowest possible interest rate," Caputo said.
According to the 2026 financing plan presented by the government, Argentina expects to raise an additional US$800 million this year through privatisations, receive US$1.9 billion from a new disbursement by the International Monetary Fund (IMF) and produce around US$6 billion through domestic debt issuance.
Argentina signed a four-year US$20 billion Extended Fund Facility agreement with the IMF in 2025.
Debt obligations are expected to total US$24.9 billion next year.
"We have set ourselves the long-term goal that by the end of a second term for President Javier Milei [in 2031], Argentina will have achieved investment-grade status. We believe that is achievable," Caputo said.
The S&P Global Ratings agency recently upgraded Argentina's sovereign credit rating to ‘B-,’ citing "reduced economic vulnerabilities and gradually improving external liquidity.”
S&P attributed the upgrade to the country's sustained fiscal surplus, lower inflation and improved access to financing.
Argentina returned to issuing US dollar-denominated debt in December with a placement under local legislation, marking its first such issuance in several years.
Caputo confirmed the government will issue a new US$2-billion bond imminently. The new issuance will be a 2029 bond (AO29) with the same characteristics as previous AO28 and AO29 bonds, carrying a six-percent coupon and monthly interest payments.
The first auction will have no maximum subscription amount, as the government aims to attract part of the US$4.3 billion in funds that will be released via Thursday's debt payment.
Caputo said that "Argentina will not be given away for dollars."
The bond will be issued under local law, allowing the government to avoid tapping international markets, where it would have to pay interest rates of more than eight percent.
Argentina ‘will no longer be cheap’
Caputo also the growing inflow of US dollars expected over the coming years from the energy sector will mean that "Argentina will no longer be cheap in dollar terms."
"Argentina will no longer be a country that is cheap in dollar terms, and that is important," Caputo said at the press conference. "The currency is a reflection of the state of the economy."
The minister stressed that "the exchange rate is not a whim; it depends on how the economy is performing," adding that "a country that is cheap in dollar terms is a country with miserably low wages when measured in dollars."
Caputo said the expected influx of foreign currency would help underpin economic stability, which he described as one of the key foundations for the development of the country's other industries.
Asked about the possibility of a swap arrangement with the United States, Caputo said it remained one of the available options, but clarified that, if needed, "we would have to start discussions again," indicating that the previous process has already concluded.
– TIMES/AFP/NA
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