The Ministry of Finance reported that during August The stock of debt in normal payment status amounted to US$455,935 millionwhich represented an increase of US$6.318 billion compared to July.
44% of the debt in normal payment situation is payable in local currency while, The remaining 56% is in foreign currency.
This increase of 1.41% is explained by the iIncrease in foreign currency debt by US$1.326 billion and the increase in commitments in local currency for an equivalent amount in dollars of US$4,992 million.
When Javier Milei assumed the presidency in December 2023, the debt in normal payment situation reached US$368,225 million. Added to these were the commitments with exporters left by the government of Alberto Fernández, and the transfer of the debt that the Central Bank held with the banks.
In this framework, The debt between December and August increased by US$87,710, to an average of US$7,309 million per monthreaching 75% of Argentina’s Gross Domestic Product. Inflation-adjusted debt (CER) reached the equivalent of US$123,633 million, 26.97% of the total, while the one maintained by the National State with the International Monetary Fund is a third of that, since it amounts to US$41,880 million.
Over the last 12 months, the stock of gross debt in normal payment status increased by the equivalent of US$62,666 million, at an average of US$5.22 million per month, due to the decrease in foreign currency commitments by US$10.604 million and the increase in the local payroll in pesos by US$73.270 million.
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Budget 2025: Government plans to issue debt only to pay capital maturities
The project of Budget 2025, Presented by Javier Milei, foresees that the country issue new debt only to pay principal due, While it does not set a date to lift the exchange rate trap.
“The payment of the debt, of the capital of the debt, will be repaid with new debt issues,” said the Secretary of Finance, Carlos Guberman, after Milei’s speech in Congress on Sunday night.
“What we will pay in full, with resources generated through tax collection, is the interest on the debt,” he added.
What is Argentina’s debt profile?
The Government is committed to improving the country’s credit profile and reducing country risk in order to regain access to international markets, In a year in which gross debt maturities in foreign currency amount to US$19,779 million in capital and US$8.947 billion in interest, according to the Finance Secretariat for the first quarter.
Argentina has a debt of more than US$42,963 million with the International Monetary Fund, and seeks to negotiate another program that includes new funds to strengthen international reserves and to be able to lift foreign exchange restrictions.
“Without saying it, (Milei) told us that she does not know when there will be a new program with the Fund. “That is why, instead of quarterly targets, he announced a fiscal policy reaction function,” described economist Guillermo Mondino in his X account, where he added that “the fiscal rule can help anchor expectations if it is credible. That is, if it is consistent and sustainable politically and socially.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
