Argentina's government celebrates Moody's upgrade, expects country risk to drop 300 points

Argentina's government has welcomed an upgrade in its credit rating outlook by Moody's, which revised the country's debt payment perspective from 'stable' to 'positive.' Vice Minister of Economy, José Luis Daza, described the decision as "very positive for Argentina," asserting that the current economic direction under President Milei is correct. He emphasized that the improved rating will lower borrowing costs for the government, companies, and the general population, potentially enabling numerous investment projects and boosting productive capacity and employment.

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This implies that the cost of credit is reduced for the government, for companies, and for the population. From now on, there are a large number of investment projects that will be financeable, and it also allows for an expansion of productive capacity and employment.

Daza expressed optimism that the improved credit rating could help lower the country's risk premium, aiming for a reduction of 300 basis points from its current level. He characterized the upgrade as a sign of consolidated stability and a structural shift in economic direction, not merely a temporary measure. Daza highlighted that Moody's assessment validates the policies supported by the International Monetary Fund and other international bodies.

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The objective is: by advancing, the country risk should drop 300 basis points.

Moody's report specifically pointed to a sustained fiscal surplus, a slowdown in inflation, and the ongoing process of economic liberalization as key factors reinforcing policy credibility and reducing macroeconomic volatility. The agency also noted a significant improvement in the country's external position. The government believes these conditions are laying the groundwork for growth, with $140 billion in investment requests anticipated.

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It is a sign that we are consolidating stability and there is a structural change and direction. It is not something temporary, but the foundation is being consolidated.

Addressing concerns about purchasing power, Daza stated the government's focus has been on enabling citizens to make ends meet and increasing employment, doing so without populism or "tricks." He affirmed that efforts are being made to protect vulnerable sectors during fiscal restructuring, directing resources to the poorest populations and reducing poverty. While acknowledging the difficult situation, he contrasted it with previous years and the administration's starting point, emphasizing a commitment to sustainable recovery.

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Of everything Moody's says, the most important thing is that this time it is different. It consolidates the validation of the International Monetary Fund and other international organizations.