Argentina confirms funds for July's multi-billion dollar debt payment

Argentina has confirmed it possesses the necessary funds to cover a significant $4.35 billion dollar debt obligation due next month. The Treasury currently holds $4 billion in U.S. dollars at the Central Bank, effectively securing the financing for the July payment, according to Finance Secretary Federico Furiase.

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Today the Treasury has deposits in dollars at the Central Bank for $4 billion and clearly already has the dollar debt maturities for July financed.

This assurance comes as Argentina prepares to face the $4.35 billion principal payment on its Global and Bonares bonds on July 9, with approximately $3.8 billion held by private creditors. To bolster its reserves, the Argentine Treasury has conducted a series of domestic bond auctions since February, raising $4 billion by selling dollar-denominated bonds maturing in 2027 and 2028. The most recent auction on Monday yielded an additional $100 million.

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We already have the dollar debt maturities for the year 2027 pre-financed.

Beyond the immediate July payment, Argentina is actively seeking financing from multilateral organizations to manage its remaining debt maturities in 2026 and 2027. Furiase stated that the debt obligations for 2027 are already "pre-financed." The government has secured partial guarantees from multilateral bodies, including $2 billion from the World Bank and the Multilateral Investment Guarantee Agency, and $550 million from the Inter-American Development Bank. This strategy aims to avoid returning to international markets, where Argentina faces high interest rates due to its high-risk credit rating and country risk index.

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We do not need to go to international markets because the 2026-2027 financial program is already closed, and it is closed with financing strategies that allow for a lower financial cost than what it would imply to go to the international market in this context.