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The IMF warns that Argentina could return to the capital market in 2025

The IMF warns that Argentina could return to the capital market in 2025
The IMF warns that Argentina could return to the capital market in 2025

The Fund highlighted in the latest report for Argentina that progress in correcting imbalances “will facilitate internal and external financing objectives.”

The International Monetary Fund (IMF) assured in the document corresponding to the Eighth review of the Extended Agreement that the Government must “continue preparing the ground” for Argentina to return to the international capital market. However, unlike other occasions, the organization set a date for that event and estimated that it could be achieved at the end of 2025 “or before.”

According to the bank of last resort, progress in correcting imbalances “will facilitate internal and external financing objectives.” He emphasizes that IMF staff value ““Continuous progress in significantly reducing domestic refinancing risks, extending maturities, moving away from securities linked to inflation and the exchange rate, as well as reducing costly Central Bank insurance.”.

And he adds, that supported by the fiscal anchor, “These debt management efforts should continue to build a yield curve in close coordination with the BCRA.“. Regarding the external sphere, he maintains that ““It remains crucial to continue mobilizing external financing and related technical support from official creditors.”.

“The IMF supports the authorities’ focus on rebuilding external buffers, as this is crucial to regain access to international financial markets by the end of 2025 (or sooner, if possible), with the objective of better managing external obligations (without increasing net debt)”he warns.

About the swap with China

Furthermore, he stressed that “China’s firm commitments are in place,” even to substantially refinance the withdrawn part of the People’s Bank of China (PBOC) swap for US$5 billion, while he pointed out that the renewed financing of the hydroelectric dam project in Patagonia “will be in line with the progress of its implementation, as Argentine authorities work to overcome environmental and labor problems“.

milei georgieva fmi g7

Reuters

In this framework, the body in charge of Kristalina Georgieva predicted that in the coming years, the Argentine authorities “will continue to focus on further reducing fiscal and external expenditures” to regain access to international capital markets “by the end of 2025 or earlier, if possible, with the aim of better managing the large foreign exchange obligations that come due, while avoiding an increase in indebtedness.”

Source: Ambito

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