Economy Minister Luis Caputo stated that Javier Milei’s administration has not dismissed the possibility of issuing international debt on Wall Street within the next two years, although he emphasised that it is “an option, not a goal.” During the presentation of the 2026-2027 financing plan on Monday, Caputo emphasised that the decision is not an outright prohibition: should financial conditions improve and interest rates become favourable, the government may contemplate a debt sale. Caputo indicated that the 2026 financing plan has already been “overshot by US$3.7 billion,” and noted that the maturities for 2027 are less demanding than those of the current year. “Refinancing the debt under local law is enough on its own. There won’t be any problem refinancing this year or in 2027,” he said. The minister stated that the government’s strategy seeks to diminish Argentina’s longstanding reliance on international credit markets. He noted that the challenge lies in cultivating a more robust local capital market, instead of relying on Wall Street to address its deficits. “Argentina is overdependent on foreign markets, and it’s good to reduce that,” Caputo stated.
The remarks confirm a shift initiated by the government in December, when the Economy Ministry retreated from plans to re-enter international debt markets following a decline in country risk attributed to its electoral victory in November. The economic team stated on Monday that it continues to evaluate various financing tools, consistently aiming to select the options that are “cheapest for citizens.” On that note, Caputo was queried regarding the potential for a second tranche of the swap line with the U.S. Treasury. He stated that there are no plans for its utilisation, yet it remains accessible if required. He also stated that the government will not pursue renegotiation of its payments to the International Monetary Fund in the forthcoming years. Regarding the financing plan, Finance Secretary Federico Furiase indicated that the requirements for the remainder of 2026 amount to US$19.2 billion.
However, through a combination of local-market issuance, loans from international organisations, and various funding sources, the government has successfully secured approximately US$22.9 billion to meet its debt obligations, according to Furiase. The plan encompasses local-market issuance amounting to US$6 billion, he stated, and the government also aims to generate approximately US$800 million through privatisations for the remainder of the year. He also left the door open to a potential international bond sale when conditions become more favourable. Consequently, the finance secretary indicated that a financing surplus of US$3.7 billion is anticipated in 2026, which could function as a “financial cushion” to address a portion of the maturities due in 2027. Against that backdrop, Caputo again articulated a long-term objective: for Argentina to restore its investment-grade status by the conclusion of 2031.
“It’s a goal of ours, not a promise,” he stated. He contended that achieving that rating would bolster macroeconomic stability, draw in greater investment, and ensure international financing on significantly more advantageous terms. Caputo indicated that the economic team has engaged in discussions with the three principal rating agencies in the market — Moody’s, S&P Global Ratings, and Fitch. He noted that two of these agencies deemed the goal attainable, although he refrained from providing additional specifics. In its report on Monday, analysts at the broking Portfolio Personal Inversores indicated that achieving the goal will be challenging. “The challenge is enormous: for Fitch and S&P Global Ratings, investment grade starts at BBB-, while Argentina still sits roughly six notches below that level,” they argued.