They confirm the largest payment to creditors so far in the Milei administration

The Secretary of Finance, Pablo Quirno, used the networks to communicate in an informal way that Argentina finally completed one of the most debated debt payments in recent times.

“They say that what is promised is a debt… in this case, PAID!” the official tweeted, without clarifying when or how the disbursement took place, the largest so far in Javier Milei’s administration.

Specifically, and as was already discounted, the Central Bank carried out on Wednesday a transfer of US$ 1.6 billion for the planned payment to holders of foreign origin and this Thursday the coupon corresponding to the securities under local law will be canceled. Reserves fell to US$ 31,171 millionwhich implies a drop of US$ 1,728 million.

In total, this Thursday Almost US$ 4.4 billion must be paid in bonds Bonares and Globals 2029 y 2030.

It is about the third coupon of the debt of US$ 66,000 million restructured in 2020 by Martín Guzmán. In exchange for securities issued under the management of Mauricio Macri, the Government delivered bonds – mostly AL29, AL30, GD29 and GD30 – with interest rates of between 0.5 and 2.3% and capital amortizations of between 8 and 10%. This allowed a reduction in interest and extended terms for 3 years, but with strong payments from 2024.

Argentina already paid US$1.6 billion in interest in January 2024 and in July was the first amortization payment, so the total amount amounted to US$2.6 billion. In January 2025, US$1.5 billion in interest and US$2.8 billion in principal were due.

According to PPI, a large part of what investors earn will be returned to sovereign bonds. “We estimate that about US$1,100 to 1,200 million of the US$4,450 million paid are in the hands of public entities, which reflects a reinvestment floor”they indicated.

“With respect to the rest, the holding of foreign legislation bonds as of the third quarter of 2024 reached 31%. If we take into account that local holders had 83% of the local debt, we can infer that 52.5% of the total payment will be received by residentswhile the rest will be for non-residents,” the analysts explained.

And they added: “Beyond the fact that local players will be more inclined to reinvest the flows, we believe that this situation will be repeated abroad due to the feeling bullish for Argentina and by the fact that our sovereign titles They still offer an attractive rate compared to its peers (debt continues to offer returns above 10%)”.

The payment comes after the Government announced last week a $1 billion REPO loan with five banks, including JP Morgan and Citi, that will serve to bolster reserves.

Investors are closely following how the Government dismantles the exchange rate trap and what the new agreement that Economy Minister Luis Caputo will negotiate with the International Monetary Fund will be like.

According to Quantum Finance, Daniel Marx’s consulting firm, there are maturities of US$ 22,000 million in 2025 (US$ 7,700 million with international organizations, US$ 9,500 million with bondholders, US$ 2,500 million for Bopreal and US$ 2,700 million from the provinces. ).