The minister of Economy Luis Caputo from Washington denied a journalistic version that indicated that the Government was evaluating issuing a bond to raise some US$10,000 million.
“We deny it because it is brutally FALSE,” wrote in X Caputo, citing a tweet published by the newspaper La Nación, which in a note by journalist Carlos Pagni affirmed the possibility of the Government issuing a bond.
Luis Caputo’s denial of the possibility of issuing a bond for US$10,000 million
The newspaper had published thatThe economic team is seeking to close a loan with the World Bank for US$4,000 million that would serve as collateral for a much larger debt issue.
According to the publication, the information was circulated as a version during the meeting of the International Monetary Fund. The note stated that economic officials “confirmed that The objective is to issue a bond in the voluntary market for US$8,000 million to US$10,000 million, using multilateral credit as support.
However, This possibility was categorically denied by Luis Caputo himself.
“It is not new debt”: Caputo gave details of the agreement with the World Bank
He Minister of Economy, Luis Caputo, ratified the direction of the economic program during a presentation at the Atlantic Council and provided details about the new financing scheme agreed with the World Bank to face debt maturities in the short term.
In dialogue with the press after his speech, the official explained the scope of the guarantee for up to US$2,000 million that the multilateral organization will grant to Argentina to facilitate the refinancing of external commitments.
“The first thing to clarify is that it is not new debt, but rather it is to refinance capital maturities. We have been working for a long time on alternative financing that is more accessible in rate, cheaper than the market. Why don’t we go to the market? Because it is our obligation to refinance the country at the lowest possible rate. And this rate is much lower than what Argentina can obtain in the market today,” he stated.
As detailed, the operation would be closed with an estimated rate of between 5.5% and 6.5% annuallywith a six-year term, although he clarified that there are still definitions in the negotiation. “This allows us to access sources of financing, to institutions that we did not have access to before. We do it using international organizations, which implement, to reach institutions around the world, such as insurance companies and banks. In the case of the World Bank, they provide the institutions and give us the money. They are US$2,000 million“he added.
Caputo also specified the planned scheme to face debt maturities. “Of the US$4.3 billion that mature every 6 months, the capital is about US$3.0 billion, which is what we want to refinance. We pay interest, some US$1.3 billion, with the primary surplus“he noted.
In this context, he highlighted that The Government will complement this strategy with a local placement program for about US$4,000 million. which would allow gathering up to US$8 billion to cover commitments and have additional margin.
In parallel, he indicated that similar mechanisms are being analyzed with other organizations such as the Inter-American Development Bank and the Development Bank of Latin Americaalthough those negotiations are still open.
“It will probably be US$3,000 or US$4,000 million more. That is to say that there is already, or surely there will be, US$8,000 million,” said the minister.
Thus, the Government will seek to cover capital maturities in the coming months. “With US$8 billion you already have the coupons for July and January and you have 2000 more left over,” he explained.
In this way, Caputo assured that he has covered the maturities for the next 18 months. In addition, he anticipated that the Government expects add additional income from privatizations or asset sales.
““In the next 12 months we will probably be raising something close to $2 billion.”he pointed out. If these projections are confirmed, Caputo would have about u$10 billion to meet future debt maturities.
“We will not move an inch from this course”
During his presentation, which he shared with the head of the Central Bank of the Argentine Republic, Santiago Bausili, the minister defended the economic direction and stressed that the central objective is to reduce taxes, regulations and improve logistics. “It is the first time that Argentina has a macroeconomic order based on political will. We will not move an inch from this course. It is necessary to deepen structural reforms,” he said.
In that sense, he insisted that competitiveness must be achieved without resorting to abrupt devaluations. “We need to gain competitiveness by reducing taxes and regulations and improving infrastructure, not through megadevaluations”he stated.
Asked about the impact of the conflict in the Middle East, the minister recognized the complexity of the international context, but assured that Argentina is in a more solid position than in previous crises. As he explained, the country has a fiscal surplus and advantages such as its energy and food export profile.
“We have virtually everything the world needs today: oil, natural gas, food, critical minerals, even artificial intelligence. We have a unique opportunity. This never happened in Argentina and confirms that this is the right path,” he said.
Finally, Caputo stressed that the current scenario differs from previous stages and left a long-term message: “There is no possibility that Argentina will resume those policies. We cannot feel more than optimistic about the future and we remain convinced that Argentina will be the country with the best performance in the next 30 years.”
