President Javier Milei stated that Argentina has obtained financing through the end of next year and is developing longer-term strategies, providing a temporary uplift to the nation’s assets. Milei, during his initial media interview following the US’s provision of a US$20-billion lifeline last week, stated that Argentina would maintain its currency swap line with China while simultaneously negotiating a financial rescue package with Washington. He indicated that he would reorganize his Cabinet following an important congressional vote next month.
“We have already secured the financing for ’26, and we are aiming to finalize that for ’27,” Milei stated during an interview on Tuesday morning. When questioned about whether Argentina would relinquish the China swap in its agreement with the United States, the president responded: “False.” Argentina’s dollar bonds experienced an uptick during Milei’s address, with notes maturing in 2035 initially increasing by as much as 1.4 cents before retracting most of the gains, ultimately trading at 55 cents on the dollar. The recent appreciation of the peso proved to be temporary, as market participants continue to seek further clarity regarding the terms of US financing. The currency experienced a decline of 0.7 percent, trading at 1,370 pesos per dollar as of 12:25 PM.
“Milei’s remarks generated some initial optimism, as securing external financing is a cornerstone of his programme to roll over upcoming debt maturities,” stated Matias Montes. “However, the market remains understandably cautious, as such comments without concrete details on the funding sources or structure tend to lack credibility.” Investors are monitoring developments from the United States and any adjustments by Milei, following the announcement by US Treasury Secretary Scott Bessent regarding plans to extend Argentina a currency swap line last Wednesday. The announcement enabled the libertarian leader to stop a decline in the peso that started earlier in September following a significant loss in a provincial election, which posed a risk to his business-friendly agenda as the national midterms approach on October 26.
Milei stated on Tuesday, “In principle, there will be changes” to the Cabinet as certain members are pursuing congressional positions. “I must adjust to ensure equilibrium within the Cabinet.” In a potentially favorable development for investors, former president Mauricio Macri has confirmed his meeting with Milei and his Cabinet Chief Guillermo Francos on Sunday. “It’s good to have resumed the dialogue after more than a year,” Macri stated in a post, noting that he conveyed his perspectives on Argentina’s current economic situation.