BUENOS AIRES, Argentina — The head of the International Monetary Fund visited Argentina’s capital on Monday and offered strong praise for President Javier Milei’s economic reform efforts, saying the country’s standing in global financial markets has been significantly restored.
IMF Managing Director Kristalina Georgieva, making the first visit by an IMF chief to Buenos Aires in eight years, expressed confidence that Argentina is capable of keeping up with its debt repayment schedule. Argentina holds the distinction of being the IMF’s single largest borrower, with approximately $58 billion in outstanding loans. A critical repayment window opens next year, which also happens to be 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 during a joint news conference with Economy Minister Luis Caputo.
Georgieva noted that Argentina’s debt situation was one of the very first topics on her agenda when she became 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.
The visit comes at a time when several key economic indicators are pointing in a positive direction. Bond prices have risen, central bank reserves have grown, and inflation has dropped considerably. Annual inflation currently stands at 33%, a dramatic improvement from the 210% rate that existed when Milei took office in late 2023. Just last week, credit rating agency Moody’s upgraded Argentina’s sovereign debt rating, following similar moves by S&P and Fitch earlier in the year.
“What we have today is a much healthier picture,” Georgieva said. “Market confidence has returned.”
On Tuesday, Georgieva is set to travel to Vaca Muerta, one of the largest unconventional oil and natural gas reserves in the world. That region is expected to become a major source of foreign currency revenue for Argentina in the years ahead.
Georgieva also indicated she does not believe Argentina will need additional IMF disbursements before the 2027 presidential election.
“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,” she said.
Financial markets are watching closely to see whether Argentina can handle its upcoming debt payments. The country is set to begin repaying the principal on its IMF loans in September, on top of ongoing interest payments, with broader foreign-currency debt obligations rising sharply in 2027. Economy Minister Caputo has indicated the government plans to cover those costs through funding from multilateral lenders, privatization proceeds, and domestic borrowing — rather than returning to international capital markets.
Despite the encouraging economic data, Milei’s approval ratings have been slipping. His austerity measures have been accompanied by sluggish consumer spending, wages that have not kept pace, rising household debt, and a modest uptick in unemployment.
The declining popularity has prompted questions about Milei’s reelection chances and created uncertainty among investors about whether his economic reform agenda would survive a change in administration.
When asked about that risk, Georgieva said the best way to address it is “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 pointed to areas where Argentina still has room to improve, including the construction sector, expanding access to credit for small businesses and home mortgages, and reducing the level of informal employment in the economy.
