In the first quarter of 2024, Argentina’s external debt saw a slight increase of 0.8% year-on-year, reaching a total of $289.97 billion, according to the National Institute of Statistics and Censuses (INDEC).
While government financial commitments rose by 0.6%, obligations of the Central Bank of the Republic of Argentina (BCRA) decreased by 4.4%. However, debt for non-financial corporations, households, and non-profits increased by 2.4%, now accounting for 35.4% of the country’s external liabilities.
The government sector holds the majority of the debt with $157.02 billion, representing 54.2% of Argentina’s external debt. Non-financial corporations and households hold $102.53 billion, and the BCRA’s obligations stand at $26.07 billion.
The composition of the government debt mainly consists of debt securities and loans, while the central bank’s liabilities include Special Drawing Rights (SDRs) and other securities and loans.
Overall, 68.6% of the debt is denominated in U.S. dollars, highlighting the significant influence of international financial dynamics on Argentina’s economic position.
Effective debt management in the face of ongoing financial challenges is crucial for Argentina, requiring active engagement with international entities like the IMF and implementation of internal economic policies to navigate the complex economic landscapes.