IMF Managing Director Kristalina Georgieva on Monday praised Argentine President Javier Milei’s austerity policies during her first visit to Buenos Aires in eight years, saying they have restored market confidence in a country long regarded as a serial defaulter on its sovereign debt. Argentina, the IMF’s largest debtor with about $58 billion in outstanding loans, has seen inflation drop from 210% to 33% since Milei took office in late 2023, while Moody’s, S&P and Fitch have all upgraded its sovereign credit rating in recent months. Georgieva expressed confidence that Argentina could meet its debt obligations, with principal repayments beginning in September, though the country faces sharply rising foreign-currency debt obligations in 2027. Despite these positive indicators, Milei’s approval ratings have declined due to weak consumer spending, stagnant wages and rising household debt, raising questions about his prospects for reelection in 2027.
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