Economic challenges rise in Argentina and Mexico regarding debt management

In Argentina, rising country risk is increasing the cost of credit and complicating debt management. Market uncertainty regarding the repayment of 2027 debt has effectively closed international markets to the country. To avoid validating high interest rates, the government has also ceased offering dollar-denominated bonds in the domestic market. Economists warn that the Treasury may increasingly rely on the Central Bank to fund debt obligations, which could deplete the entity's reserves and create exchange rate tensions.

In Mexico, the International Monetary Fund (IMF) has stated that the country must redouble its fiscal efforts to reduce public debt. While Mexico's fiscal consolidation continued through 2026, the IMF noted that greater efforts are required to place debt on a downward trajectory, especially as public debt is projected to reach 55% of GDP by 2027. The IMF recommended increasing revenue collection and prioritizing spending to protect public investment while stimulating private sector participation to support economic growth.