The IMF warns that Argentina could return to the capital markets in 2025.
The International Monetary Fund (IMF) stated that the government must "continue laying the groundwork" for Argentina to return to markets.
The IMF highlighted in its latest report on Argentina that progress in correcting imbalances “will facilitate internal and external financing objectives.”
In the document corresponding to the Eighth Review of the Extended Agreement, the International Monetary Fund (IMF) stated that the government must “continue laying the groundwork” for Argentina to return to the international capital market. Unlike previous instances, the IMF provided a timeline for this event, estimating it could be achieved by the end of 2025 “or sooner.”
According to the lender of last resort, progress in correcting imbalances “will facilitate internal and external financing objectives.” The IMF staff acknowledges “the ongoing progress in significantly reducing domestic refinancing risks, extending maturities, moving away from inflation- and exchange rate-linked securities, as well as reducing the costly insurance from the Central Bank.”
Furthermore, supported by fiscal anchors, “these debt management efforts should continue building a yield curve in close coordination with the Central Bank.” Externally, it remains crucial to “continue mobilizing external financing and related technical support from official creditors.”
“The IMF supports the authorities’ focus on rebuilding external buffers, as this is crucial for regaining access to international financial markets by the end of 2025 (or sooner if possible), with the aim of better managing external obligations (without increasing net borrowing),” the report warns.
Additionally, the report noted that “firm commitments from China are in place,” including substantial refinancing of the $5 billion withdrawn from the swap with the People’s Bank of China (PBOC). It also mentioned that the renewed financing for the hydroelectric dam projects in Patagonia “will be aligned with the progress of their implementation, as the Argentine authorities work to overcome environmental and labor issues.”
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