EM LATAM CREDIT: Argentina: Further Fiscal Adjustment - Positive
(Caa3pos/CCC/CCC+)
"Caputo Says True Milei Ordered Further Fiscal Adjustment" - Bbg / El Cronista
President Milei sought to improve the fiscal surplus further, ordering ministers to make further fiscal adjustments as reported by local news outlet El Cronista and confirmed by Economy Minister Luis Caputo according to Bloomberg.
We posted a few days ago on the latest primary surplus reported by the government:
https://mni.marketnews.com/3HPS1UK
Milei reportedly wants to get to 1.6% of GDP. The IMF specified a minimum of 1.25% for 2025 and 2.5% for 2026. Through April we calculated the primary surplus was nearly 1% so the government does seem to be on track already.
ARGENT 2035s were last quoted USD65.73, 3 points higher QTD and down a point YTD.
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SFIZ5 95.50/96.00/96.50c fly vs 97.00/96.50ps 1x2, sold the fly at -15 in 18.5k.
