President Javier Milei advances debt financing plan and central‑bank overhaul

Argentina’s government under President Javier Milei announced a multi‑billion‑dollar financing strategy to meet bond maturities through 2027 without returning to international bond markets. The Treasury secured loans of US$ 3.2 billion from Santander, BBVA and Deutsche Bank, backed by guarantees from the World Bank’s MIGA, the IBRD and the IDB. The credits are intended to cover the US$ 4.55 billion of dollar‑denominated bonds due in July 2026, with interest repayments beginning in December 2026 and principal amortisation scheduled for 2029‑30.

The plan relies on local‑market issuance, multilateral loans and privatization proceeds, rejecting a US$ 5 billion ten‑year bond offer at roughly 12.5 % because of its high cost. Economy minister Luis Caputo set a target of regaining investment‑grade rating by the end of 2031. Simultaneously, the administration is pursuing a reform of the Carta Orgánica of the Banco Central (BCRA) that would expressly forbid the central bank from financing the Treasury and introduce criminal penalties for violations. The reform also incorporates a “shutdown”‑type mechanism to block spending that lacks approved financing.

The International Monetary Fund echoed support for both the financing program and the BCRA amendment. Spokesperson Julie Kozack said the measures increase market transparency, reduce sovereign‑risk differentials and strengthen the central bank’s independence. The IMF risk premium on Argentine debt fell to around 400 basis points, its lowest since 2018. IMF Managing Director Kristalina Georgieva is scheduled to visit Argentina on 28‑29 July for talks with President Milei and other stakeholders.