Milei’s money man shuns foreign markets after failed bond binge
Luis Caputo previously tapped foreign bond markets again and again, earning the moniker “serial borrower” from his critics. But nowadays, he's not selling bonds overseas. Leer más
Luis Caputo, now the top economic aide to Argentine President Javier Milei, has shunned foreign bond markets following a failed bond binge during his first stint as a finance official a decade ago. Caputo, who earned the nickname "serial borrower," sold over US$40 billion in foreign bonds during his previous tenure and is now trying to avoid paying the high interest rates demanded by the global bond market.
Argentina's financing needs have decreased due to deep budget cuts, and Caputo argues that the Milei administration has implemented significant reforms that warrant lower interest rates. However, local bond markets and multilateral lenders have so far been unable to meet Argentina's financing needs, leaving the government to rely on domestic savings and bank loans.
Caputo's approach has been successful so far, but analysts warn that a political setback or global bond selloff could leave Argentina vulnerable to a cash crunch.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
