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Argentina Posts July Financial Deficit as Debt Coupons Hit, Maintains Primary Surplus

Driven by concentrated interest outflows and the medio aguinaldo, the month turned negative even as officials report a year‑to‑date primary surplus near 1.1% of GDP.

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El ministro de Economía, Luis Caputo. 

Overview

  • July closed with a financial deficit of $168,515 million after net interest payments reached $1.9179 trillion, while the primary balance showed a $1.749 trillion surplus.
  • Economy Minister Luis Caputo cited semiannual coupons on Bonares and Globales and the public‑sector half‑year bonus as the main drivers of the one‑month shortfall.
  • The Ministry says the year‑to‑date primary surplus stands near 1.1% of GDP and the cumulative financial balance is about 0.3% of GDP through July.
  • The IMF’s latest staff report notes that counting capitalized interest above the line would imply a financial deficit of roughly 1.2% of GDP, while Congress’s budget office estimates nominal interest near 2.9% of GDP.
  • Analysts highlight July’s seasonality in debt service and debate how to treat capitalized coupons on local instruments, with some groups arguing that including them would materially widen the reported deficit.