Argentina is set to make a near US$1-billion payment to foreign bondholders this week while the government of President Javier Milei continues talks with the International Monetary Fund as he seeks to restore investor confidence in the serial-defaulting nation.
Interest on several hard-currency bonds comes due Tuesday, marking a major test for Milei just a month after he took office promising to overhaul South America’s second-largest economy. Despite being short on cash, the government is expected to make the payments in part by dipping into foreign reserves that got a boost from Milei’s initial shock measures.
“It would be a big surprise if they were to default,” Cathy Hepworth, head of emerging-market debt at PGIM Fixed Income said about the payment. “It’s a little less certain as the year progresses and as we get to next year.”
The tab comes due just as the government meets with IMF officials in an attempt…
