IMF chief says Argentina is better positioned to meet debt obligations
under Milei
[July 28, 2026] By
DÉBORA REY
BUENOS AIRES, Argentina (AP) — International Monetary Fund Managing
Director Kristalina Georgieva praised Argentine President Javier Milei’s
austerity policies and reform agenda Monday, saying they have restored
market confidence in a country long regarded as a serial defaulter on
its sovereign debt.
Georgieva, the first IMF head to visit Buenos Aires in eight years,
expressed confidence that Argentina could meet its debt obligations. As
the fund’s largest debtor with about $58 billion in outstanding IMF
loans, Argentina faces a key repayment period beginning next year, when
Milei is expected to seek reelection.
“Argentina is in a much stronger position, and this is the result of the
government’s hard work and the perseverance and sacrifice of the
Argentine people,” Georgieva said at a news conference alongside Economy
Minister Luis Caputo.
Georgieva recalled that Argentina’s debt was among the first issues
discussed when she took over as IMF managing director in 2019.
“We were debating whether the country would be able to keep up with
servicing its debt obligations to everyone. That is not the question we
should be asking today,” she said.
Georgieva’s visit comes as Argentina’s economic outlook has improved,
with bond prices rising, central bank reserves increasing and inflation
falling. Annual inflation has slowed to 33%, down sharply from 210% when
Milei took office in late 2023. Last week, Moody’s upgraded Argentina’s
sovereign credit rating, months after similar upgrades by S&P and Fitch.
“What we have today is a much healthier picture,” Georgieva said.
“Market confidence has returned.”
Georgieva is scheduled to visit Vaca Muerta on Tuesday, one of the
world’s largest reserves of unconventional oil and natural gas. Its
development is expected to become one of Argentina’s main sources of
foreign-currency earnings in the coming years.
Georgieva also said she sees no need for additional IMF disbursements
before the 2027 presidential election.
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President of the International Monetary Fund Kristalina Georgieva,
right, and Argentina Economy Minister Luis Caputo pose for a photo
as they arrive at the Economy Ministry for a meeting in Buenos
Aires, Argentina, Monday, July 27, 2026. (AP Photo/Gustavo Garello)
 “We may be on a good track for
Argentina to join the club of emerging markets that have borrowed
from the Fund, reformed their economies and borrowed no more,”
Georgieva said.
Investors are closely watching Argentina’s ability to meet its
upcoming debt payments. The country will begin repaying principal on
its IMF loans in September, adding to its interest payments, while
its broader foreign-currency debt obligations are set to rise
sharply in 2027.
Caputo has said the government expects to cover those payments with
funding from multilateral lenders, proceeds from privatizations and
domestic borrowing rather than by returning to international capital
markets.
Despite the improving economic indicators, Milei has faced declining
approval ratings as his austerity policies have coincided with weak
consumer spending, stagnant wages, rising household debt and a
modest increase in unemployment.
The president’s declining popularity has raised questions about his
prospects for reelection in 2027 and increased investor uncertainty
over whether his economic reforms would continue under a future
administration.
Asked about that possibility, Georgieva acknowledged that these
risks are best managed "by building strong policies during the time
we have now ... policies that inspire confidence among the people of
the country and the international community.”
Georgieva also said Argentina still has work to do in areas
including construction, expanding credit for small businesses and
mortgages, and reducing informal employment.
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