Since taking office in December 2023, Javier Milei has implemented a series of key economic policies that have significantly reduced Argentina's consolidated debt.
According to recent data published by the Ministry of Economy, between November 2023 and August 2024, the consolidated debt of the Treasury and the Central Bank of Argentina (BCRA) was reduced by US$46,418 million, a figure that marks a milestone in the country's economic history.
This reduction is largely due to the implementation of a stabilization plan based on three pillars: fiscal discipline, monetary control and a sound exchange rate strategy. These three components, known as “the three anchors” of the plan, were fundamental to achieve this financial relief that directly impacts the sustainability of public finances.
The Secretary of Finance, Pablo Quirno, made a publication in X, where he highlighted the importance of this strategy, pointing out that the management of President Milei was fundamental to correct the fiscal imbalances of the past.
One of the central points was the elimination of the BCRA's interest-bearing liabilities, generated by previous governments due to the fiscal irresponsibility that characterized them. This measure not only made it possible to clean up the central bank's balance sheet, but also resulted in a notable improvement in consolidated debt.
Debt reduction occurred on several fronts. First, the National Treasury made debt repurchases for an amount of US$10 billion, which helped to reduce the country's exposure to future commitments. In addition, there was a significant reduction in peso-denominated debt, equivalent to almost 20 billion dollars, as a result of the policy of repurchasing securities in local currency.
Finally, the financial plan also made it possible to discount from the consolidated debt the deposits that the Treasury holds in the BCRA as a reinsurance of liquidity in pesos, a strategic move that strengthens the State's financial position without increasing the nation's obligations.
The chart presented by the Ministry of Economy clearly illustrates the magnitude of these achievements. Consolidated debt, which in November 2023 amounted to $487,213 million, was reduced to $440,795 million in August 2024. This improvement, amounting to US$ 46,418 million, is a direct reflection of the excellent economic management carried out by the Milei administration.
In addition, monetary management was key to reducing inflation, while control over the exchange rate managed to avoid exchange rate crises that in the past severely impacted economic stability.
This debt reduction is only the beginning of a path towards sustainability and economic growth. The structural reforms implemented in these first months of the government laid the foundations for a more competitive Argentina with greater freedom.
The massive debt reduction not only represents a relief for the country's current finances, but also marks a change of course for the future.
By reducing the debt burden, Javier Milei's government frees up resources that can be allocated to other more productive areas, which means it will benefit future generations.
This achievement is one of the Milei administration's greatest economic victories, demonstrating that with fiscal discipline and a well-executed liberal strategy it is possible to fix the major problems that have plagued Argentina's economy for years.
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Both Milei and Bukele working to reduce their country's debts 👍