Argentina: Government denies default risk amid economic shifts

Presidential spokesperson Adrián Ravier stated during a press conference at Casa Rosada that Argentina will not enter default as long as Javier Milei is president. Ravier asserted that debt maturities for 2026 and 2027 are covered, dismissing the recent rise in country risk, which exceeds 800 basis points, as a transitory effect of external global shocks rather than a domestic crisis.

In related economic developments, the Central Bank of Argentina (BCRA) has ceased purchasing foreign currency in the wholesale market for several consecutive sessions. This pause comes amid rising demand for dollars and a decline in reserves, which fell by US$148 million to reach US$50,293 million. The BCRA faces pressure to accumulate US$3,000 million in net reserves before December to meet IMF requirements.

Additionally, the government announced the preventive suspension of over 4,000 non-contributory disability pensions due to a lack of supporting documentation, alongside audits of thousands of other beneficiaries. In the energy sector, YPF is pursuing projects in Vaca Muerta under the Large Investment Incentive Regime (RIGI), with estimated investments of US$44,000 million over the next 26 years.