Gross debt in November totaled the equivalent of $445,985 million. “of this, $443,472 million is in a normal payment situation”as the government announced when updating the latest data in this regard.
In this way, take on the regulated liabilities recorded an increase of the equivalent of $3,784 million (+0.86%) compared to the previous month, largely due to the interest generated and capitalized by many of the bonds and bills regularly issued by the government of Javier Milei.
Added to this is the impact that inflation of around 2% or more in recent months has had on peso-denominated instruments issued by CERs with variable capital Foreign currency debt saw a $70 million decline this month.
Despite this monthly inventory increase If you look at the last 12 months, the total gross debt was reduced by the equivalent of 19,027 million US dollars with a normal payment situation“due to the decrease in foreign currency debt by $3,682 million and the reduction in domestic currency debt by an amount equivalent to $15,345 million,” said the report published by the Ministry of Finance.
This effect was due in large part to the devaluation of the peso by almost 29% during the year, which allowed the dollar value of local currency debt to be reduced.
The above document also clarifies that “43% of the debt is normally payable in local currency, while the remaining 57% is payable in foreign currency.”
The debt in foreign currency amounts to 250,775 million US dollars and in pesos the equivalent is 192,697 million US dollars. Amounts that do not include the debts of the Central Bank (BCRA) and the commitments undertaken by the provinces and municipalities. For international organizations, debt adds up $94,704 million, of which $56,771 million are obligations to the International Monetary Fund (IMF), The rest is mainly distributed between the IDB, the World Bank and other institutions.
In November, The State Treasury Department made repayments on state debt totaling $16,754 millionof which 93% in pesos and 7% in foreign currency. Of this total amount, $15,664 million was set aside for principal payment and $1,090 million was set aside for interest payment.
These expenses were largely financed with new debt, but the capitalization and inflation adjustments to the capital of the above-mentioned securities resulted in an increase in debt by the equivalent of $3,790 million when there were $1,385 million in net cancellations during the month.
The Treasury report also shows that the central bank’s international reserves (BCRA) closed November at $40,335 million, “an increase of $954 million” compared to the end of October.
And this is also noted in the letter This improvement was largely explained “by the increase in foreign currency checking accounts of financial institutions.” in the Central Bank, in the context of the growth of dollar deposits” and despite there being payments to the IMF of $793.6 million.
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