Argentina's consolidated net state debt fell to its lowest level since 2018 thanks to Milei

The Argentine State's consolidated net debt reached 239 billion dollars in the second quarter of 2025, representing 34.2% of the Gross Domestic Product (GDP), the lowest level since the end of 2018, thanks to the work carried out by Javier Milei's government.

The calculation, conducted by the broker Facimex Valores, considers both the Treasury's debt and that of the Central Bank of the Argentine Republic (BCRA), subtracting the holdings of national public sector agencies, such as the ANSeS Guarantee and Sustainability Fund and Banco de la Nación Argentina. The consolidated liquidity position of the BCRA (net reserves) and the Treasury (deposits in dollars and pesos, both in the financial system and in the BCRA) are also deducted.

How much did the debt fall under Milei's government?

Facimex Valores indicates that consolidated net debt recorded a reduction of USD 26.4 billion (equivalent to 6.4 points of GDP) compared to the third quarter of 2023, before the change of government.

"It is important to note that this measure of consolidated net leverage of the national public sector has already posted five consecutive quarters of decline, reaching lows since the fourth quarter of 2018," the report highlights.

When broken down by currency, consolidated net debt in foreign currency accounted for 26.3% of GDP, while debt in local currency reached 7.9% of GDP. This way, Facimex Valores reaffirmed that Argentina's debt indicators are already compatible with access to financing in international markets.

According to the report by the brokerage firm, consolidated gross debt with the private sector, which implies a real rollover risk, stood at 25.2% of GDP during the second quarter of 2025, the lowest level since the third quarter of 2016. Within this total, Facimex highlighted that foreign currency debt accounted for 14.6% of GDP, also close to historic lows since 2016.

The study also emphasized that, although debt with bilateral and multilateral organizations represents a significant proportion, equivalent to 13.7% of GDP, Argentina doesn't face a real rollover risk as long as it continues to comply with the program agreed with the International Monetary Fund (IMF).

In this context, Facimex pointed out that gross external debt with the private sector represents just 8.5% of GDP, one of the lowest levels since the first quarter of 2016.

"When we arrived, the debt was USD 500 billion and now it's USD 450 billion, while the orcs say we're getting into debt. It seems they have a problem with arithmetic," Javier Milei stated during the presentation of economist Salvador Di Stéfano's book. With this statement, the President was referring to the total amount of Treasury debt plus Central Bank debt.