Milei and Caputo face payments of $4,225 million and are activating financing alternatives

The executive branch must deal with high foreign debt maturities. REPO, hydropower concessions and local debt are among the options to cover the deficit

12/28/2025 – 6:25 p.m

The government of Javier Milei is preparing for the first major financial challenge of 2026: the Payment of foreign debt maturities for a total amount of $4,225 million to be paid on January 9th. Less than two weeks from that date, the Treasury already has some of the dollars needed, although how it will cover an amount close to $2.4 billion remains to be defined.

The commitment marks the start of a year that will be marked by the official strategy of Consolidating fiscal balance, strengthening reserves and reducing dependence on external financinga line that President Milei and his Economy Minister Luis Caputo have taken since the beginning of the government.

What resources does the Ministry of Finance have today and what financing alternatives are there?

According to official sources, the government currently has about $1.8 billion allocated specifically to address the problem Due dates in January. Added to this amount are various instruments that would expand the availability of foreign currencies in the short term.

Among them is the Edition of BONAR 2029Nthe purchase of reserves carried out in recent weeks and the possibility of using all or part of the almost $700 million that flows to the state from hydroelectric concessions. These resources are part of the plan analyzed by the Ministry of Economy to complete the necessary financing before maturity.

But even considering these alternatives, the government must determine how the remaining amount will be covered. Within this framework, two options began to gain weight: negotiating a REPO agreement with private banks and new placements on the local debt market.

REPO and debt in pesos, the cards in play

The possibility of an agreement REPO seems to be one of the most immediate tools. It is a short-term financing operationguaranteed with assets that would make it possible to obtain dollars without having to resort to traditional bond issuance in international markets.

In parallel, the economic team is considering deepening placements in the local market in line with the official strategy to strengthen domestic financing. This position was expressly expressed by himself. Luis Caputo, who ruled out opening up international markets under foreign legislation in the short term.

The Minister of Economy made it clear that his priority is to reduce Argentina’s dependence on external financing. “We will try to ensure that there is none. The aim is to eliminate the country’s dependence on Wall Street. Will we be able to do that? We think so,” he said in response to a query on social media.

Caputo also emphasized that developing an internal capital market is the key to sustainable growth. “Without a more developed internal capital market, it is very difficult for a country to grow over time,” he explained. In this sense, he explained that the REPO allows us to save time while consolidating local financing alternatives. “The REPO already assures us that we can. But we are working on other alternatives for the future. We want Wall Street to be a marginal source of financing for Argentina, at least in terms of government bonds,” he added.

Javier Milei is confident that he will meet his payments

For his part, President Javier Milei expressed a message of calm regarding the January due dates and assured this The government will fulfill all its obligations. “Argentina will pay its debts, there is no doubt about it. Minister Caputo will take care of it, who understands like no other the value of payment,” he said in radio statements.

The president’s message aims to do just that strengthen the signal of commitment to creditors and maintaining the credibility of the economic program, one of the central pillars of libertarian management.

With deadlines approaching and definitions underway, the payment of the $4,225 million becomes the first important test of 2026 for the economic team. The outcome will not only have an immediate financial impact, but will also set the tone for the official debt and financing strategy for the rest of the year.