By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. January 12, 2025. Article no 1371.
“Debts must be paid,” declares President Javier Milei as Treasury makes first due bond repayments of 2025, amounting to US$4.341 billion in principal and interest. This is the largest payment since 2020 restructuring boosts bond prices.
Argentina has successfully made a significant debt repayment of US$4.341 billion to international bondholders, marking a crucial step in President Javier Milei’s efforts to restore investor confidence.
This payment, which included both principal and interest, was made on Thursday, January 9, 2025, and covered a variety of hard-currency notes, including US$2.65 billion of credits issued under New York law from a 2020 restructuring.
Milei’s free-market reform drive and growing expectation that he will repay debts have powered a big rally in Argentina’s sovereign bond prices in recent months.
President Javier Milei celebrated this achievement on social media, declaring “Debts must be paid. Long live freedom!”.
Finance Secretary Pablo Quirno also confirmed the payment, emphasizing the Argentina’s government’s commitment to meeting its financial obligations. This repayment is particularly significant because:
- It demonstrates Argentina’s ability to meet its financial commitments despite economic challenges.
- It’s part of a larger strategy to improve Argentina’s standing in international financial markets.
- It follows other positive economic developments, including a recent US$1 billion repurchase agreement with major banks.
The successful payment is seen as a strong signal to markets and investors, potentially paving the way for more favorable international financing conditions. However, Argentina still faces significant financial challenges, with total repayments of US$18.5 billion due in 2025.
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The Milei administration’s economic policies have shown promising results in its first year, with inflation decreasing, signs of economic recovery, and improved consumer and investor confidence. These developments, along with the recent debt repayment, contribute to a more optimistic outlook for Argentina’s economic future. Argentina’s economy is seen expanding by 4.5% in 2025.
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Argentina’s monthly inflation rate was 2.7% in December, afther slowing to 2.4% in November, the lowest in over four years, the official INDEC statistics agency said on Wednesday. Inflation already slowed to 2.7% in October, the lowest level in three years in a win for the libertarian government of President Javier Milei who came to power almost a year ago promising to pull Argentina out of a dire economic crisis. When he took office in December 2023, monthly inflation surged to 25%.
Milei’s approach has garnered attention both domestically and internationally, with figures like Elon Musk praising his efforts. However, the long-term sustainability of these measures remains uncertain as Argentina continues to grapple with high inflation and social challenges.
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© Copyright 2025 – Eurasia Business News. Article no. 1371.
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