In an October marked by electoral tension, exchange rate volatility, and uncertainty fueled by opposition sectors and analysts critical of the economic direction, the national government achieved a rare milestone: the total national public sector debt decreased for the sixth consecutive month. According to the Finance Secretariat, the balance of obligations of the Central Administration fell by USD 6.965 billion compared to September, as a result of amortizations and swaps that far exceeded issuances. The rest of the decrease was due to exchange rate movements.
The month was marked by strong financial fluctuations: The "contado con liquidación" (CCL) opened October at $1,593, reached a high of $1,610 on October 21, hit a low of $1,422 mid-period, and finally closed at $1,497.
Sovereign bonds showed a significant recovery: country risk dropped from 1,264 basis points to 657 bps, a decrease of more than 600 points during the month.
Meanwhile, the wholesale exchange rate—a key reference for the dollar valuation of peso-denominated debt—moved between extremes of $1,366 and $1,486, ending at $1,443, which implied a 5.6% increase and a direct impact on the reduction of the dollar-equivalent of liabilities in local currency (USD 11.183 billion less).
The team led by Alejandro Lew detailed that during October, debt operations amounted to USD 33.889 billion, consisting of: USD 13.477 billion in new financing and USD 20.412 billion in cancellations, resulting in a net decrease of USD 6.965 billion, consolidating the sixth consecutive monthly decline.
After adjustments for exchange rate differences and interest capitalization, the Central Administration's debt deepened its decline by USD 4.873 billion, standing at USD 442.196 billion, a 2.6% monthly decrease and USD 20.357 billion year-on-year.
The decrease in official deposits at the Central Bank—in pesos and dollars—by the equivalent of USD 6.665 billion, down to USD 3.757 billion, moderated the consolidated reduction of debt between the Treasury and BCRA to:
USD 5.170 billion in October,
USD 10.717 billion accumulated.
Debt under foreign legislation fell by USD 652 million, to USD 163.128 billion, while debt under local law contracted by USD 11.183 billion, to USD 279.068 billion at the closing wholesale exchange rate.
Operations with international organizations—excluding the IMF—aimed at recapitalizing the Central Bank and advancing administrative reforms, together with the exchange rate revaluation, resulted in a reduction of USD 519 million, closing at USD 37.545 billion. Loans with the IMF remained at USD 57.292 billion.
