Milei's government paid a debt incurred by Kirchnerism for USD 4.2 billion.

The Government of Javier Milei completed on Tuesday the payment of one of the most significant debt maturities of the year, for a total of USD 4.2 billion. The disbursement, corresponding to bonds issued after the 2020 restructuring during the administration of Alberto Fernández and Cristina Kirchner, had an immediate impact on the Central Bank's gross reserves, which fell below the USD 40 billion threshold and closed at USD 39.168 billion.

The operation was confirmed by the Ministry of Economy, which reported the initial transfer of USD 2.55 billion abroad as amortization and interest payments on global bonds in dollars and euros. According to Portfolio Personal Inversiones (PPI) brokerage firm, "gross reserves fell by USD 2.552 billion, almost exactly the amount that must be paid for coupon and amortization of Global and Euro bonds (USD 2.55 billion)". The remainder of the payment, about USD 1.6 billion, will be transferred in the coming business days.

This payment was made on bonds restructured in 2020, which established principal maturities in annual installments and semiannual interest payments. The operation reflects one of the inherited costs of the strategy adopted by the previous administration, which postponed payments but maintained obligations of increasing magnitude for the following years.

According to GMA Capital, "the amount the Government will pay is mainly explained by maturities of AL30 (USD 1.09 billion) and GD30 (USD 1.132 billion), which return USD 8 of principal for every 100 securities to their holders".

The fiscal and exchange rate impact of this operation is significant. At a time when the International Monetary Fund is conducting a new technical review of the agreement with Argentina, compliance with financial commitments is being closely monitored.

Javier Milei's administration keeps that fiscal order is the cornerstone of its economic program. The elimination of the deficit, containment of monetary issuance, and gradual removal of exchange controls are the pillars that the Government considers necessary to restore stability. However, the external front remains a critical point.

The Secretary of Finance,Pablo Quirno, highlighted the fulfillment on his X account: "On Independence Day we honor our obligations as we said and have done since the first day of President Javier Milei's government. TMAP['Everything Is Going According to Plan']. Long live the Homeland".

According to LCG consulting firm, "the government should add, through debt or purchases in the MULC by the Treasury or the Central Bank, a total of between USD 5 billion and USD 9.5 billion additionally in the last quarter of the year" to meet the agreed objectives.

The situation reflects the limits of the inherited scheme: the program with the IMF requires not only a fiscal surplus but also a rebuilding of reserves. Meanwhile, in this area, the burden of maturities resulting from the 2020 restructuring constitutes a central constraint.

Alberto Fernández and Cristina Kirchner's administration irresponsibly managed to postpone short-term payments, but at the cost of committing the country to increasing obligations in the medium term. The July 9 paymentis concrete evidence of those accumulated commitments by the current Government.

In this context, the Government seeks to maintain credibility with the markets and the international organization. The official priority remains to avoid a new episode of reserve crisis without resorting to an increase in public spending or to monetary financing.