The Argentine government will have greater flexibility to negotiate its debt in 2026, enabling it to restructure its liabilities in light of the significant payments the country must make. This was reported by Noticias Argentinas (NA). The corresponding changes were made to the Financial Administration Law as part of the approved budget for the upcoming year. The new provisions authorize the Ministry of Economy to conduct 'liability management operations, regardless of the instrument that expresses them.' This includes the purchase, sale, and/or exchange of financial instruments such as bonds or shares, currency swaps, interest rates, or titles, as well as any other financial transaction typical of derivatives markets. As noted by the Budget Office (OPC), the main difference between the new wording and the previous one is that it no longer includes public debt restructuring operations under Article 65 of the law. This article had previously allowed the government to carry out debt and guarantee restructuring operations to improve the amounts, terms, and/or interest rates of the original operations. Experts believe this reform will allow Economy Minister Luis Caputo to conduct negotiations more effectively and manage the country's debt burden during a challenging financial year.
