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Milei Vows to Meet January Debt Payment as Caputo Finalizes Financing

Argentina turns to a bank repo and domestic instruments after rejecting new foreign-law bonds.

Overview

  • President Javier Milei said the government will pay the roughly US$4.2 billion due on January 9 to bondholders.
  • Economy Minister Luis Caputo ruled out issuing new sovereign bonds under foreign law and is arranging a repo with international banks, which he says already guarantees payment capacity.
  • Officials are also evaluating ANSES-linked schemes and other local-market tools to cover near-term needs and reduce reliance on Wall Street financing.
  • The Central Bank reports gross reserves at about US$43.61 billion, while available Treasury cash remains below the January obligation and will be supplemented by these operations.
  • Congress recently approved the 2026 Budget and the 'Inocencia fiscal' law, steps the Executive touts as strengthening fiscal credibility as the IMF tracks reserves, fiscal balance and debt-service performance.