IMF chief says Argentina is better positioned to meet debt obligations under Milei

BUENOS AIRES, Argentina (AP) — International Monetary Fund Managing Director Kristalina Georgieva praised Argentine President Javier Milei’s austerity policies and reform agenda Monday, saying they have restored market confidence in a country long regarded as a serial defaulter on its sovereign debt.

Georgieva, the first IMF head to visit Buenos Aires in eight years, expressed confidence that Argentina could meet its debt obligations. As the fund’s largest debtor with about $58 billion in outstanding IMF loans, Argentina faces a key repayment period beginning next year, when Milei is expected to seek reelection.

“Argentina is in a much stronger position, and this is the result of the government’s hard work and the perseverance and sacrifice of the Argentine people,” Georgieva said at a news conference alongside Economy Minister Luis Caputo.

Georgieva recalled that Argentina’s debt was among the first issues discussed when she took over as IMF managing director in 2019.

“We were debating whether the country would be able to keep up with servicing its debt obligations to everyone. That is not the question we should be asking today,” she said.

Georgieva’s visit comes as Argentina’s economic outlook has improved, with bond prices rising, central bank reserves increasing and inflation falling. Annual inflation has slowed to 33%, down sharply from 210% when Milei took office in late 2023. Last week, Moody’s upgraded Argentina’s sovereign credit rating, months after similar upgrades by S&P and Fitch.

“What we have today is a much healthier picture,” Georgieva said. “Market confidence has returned.”

Georgieva is scheduled to visit Vaca Muerta on Tuesday, one of the world’s largest reserves of unconventional oil and natural gas. Its development is expected to become one of Argentina’s main sources of foreign-currency earnings in the coming years.

Georgieva also said she sees no need for additional IMF disbursements before the 2027 presidential election.

“We may be on a good track for Argentina to join the club of emerging markets that have borrowed from the Fund, reformed their economies and borrowed no more,” Georgieva said.

Investors are closely watching Argentina’s ability to meet its upcoming debt payments. The country will begin repaying principal on its IMF loans in September, adding to its interest payments, while its broader foreign-currency debt obligations are set to rise sharply in 2027.

Caputo has said the government expects to cover those payments with funding from multilateral lenders, proceeds from privatizations and domestic borrowing rather than by returning to international capital markets.

Despite the improving economic indicators, Milei has faced declining approval ratings as his austerity policies have coincided with weak consumer spending, stagnant wages, rising household debt and a modest increase in unemployment.

The president’s declining popularity has raised questions about his prospects for reelection in 2027 and increased investor uncertainty over whether his economic reforms would continue under a future administration.

Asked about that possibility, Georgieva acknowledged that these risks are best managed "by building strong policies during the time we have now ... policies that inspire confidence among the people of the country and the international community.”

Georgieva also said Argentina still has work to do in areas including construction, expanding credit for small businesses and mortgages, and reducing informal employment.

President of the International Monetary Fund Kristalina Georgieva waves as she leaves the Economy Ministry after a meeting with Argentina Economy Minister Luis Caputo, left, in Buenos Aires, Argentina, Monday, July 27, 2026. (AP Photo/Gustavo Garello)

President of the International Monetary Fund Kristalina Georgieva leaves the Economy Ministry after a meeting with Argentina Economy Minister Luis Caputo in Buenos Aires, Argentina, Monday, July 27, 2026. (AP Photo/Gustavo Garello)

President of the International Monetary Fund Kristalina Georgieva, right, and Argentina Economy Minister Luis Caputo arrive at the Economy Ministry for a meeting in Buenos Aires, Argentina, Monday, July 27, 2026. (AP Photo/Gustavo Garello)

President of the International Monetary Fund Kristalina Georgieva, right, and Argentina Economy Minister Luis Caputo arrive at the Economy Ministry for a meeting in Buenos Aires, Argentina, Monday, July 27, 2026. (AP Photo/Gustavo Garello)

President of the International Monetary Fund Kristalina Georgieva, right, and Argentina Economy Minister Luis Caputo pose for a photo as they arrive at the Economy Ministry for a meeting in Buenos Aires, Argentina, Monday, July 27, 2026. (AP Photo/Gustavo Garello)

LONDON (AP) — High winds knocked out power to thousands of people in southwest England on Friday morning as the first of two major storms expected to hit the U.K. this weekend swept in from the Atlantic.

The U.K. Met Office issued an amber warning — the second highest — for wind gusts up to 80 mph (130 kph) in Cornwall and Devon as the storm named Austen by the agency moved into the area early Friday.

According to the National Grid, which distributes electricity around the U.K., more than 16,000 homes were without power in the southwest by late morning.

Winds up to 60 mph (100 kph) are forecast across southern and central England throughout the day as the storm moves eastward along the English Channel coast.

With heavy rain forecast in some areas and the likelihood that high winds will topple trees that are still in full leaf, the Met Office warned of further power outages and travel disruptions.

Weather forecasters on Jersey issued a red warning — the highest — for shipping around the Channel Islands, with wind gusts of up to 80 mph expected in the area.

A second major storm — Boelo — is expected to bring more wind and heavy rains to northern parts of the U.K. later in the weekend.

The Met Office updated its warning for Boelo from yellow to amber for Northern Ireland, Scotland and parts of northern England on Saturday night and throughout Sunday.

With winds gusting up to 65 mph (105 kph), forecasters are warning of further power cuts, transportation delays and the risk of building damage and flying debris.

British Prime Minister Andy Burnham warned of the potential of more weather events that could lead to flooding this winter as he attended a summit organized to learn from the summer’s record wildfires.

“We potentially are facing a winter of greater flooding, so it’s about recognizing all of those risks and taking action," he said.

His comments come a day after the government launched a campaign urging Britons to prepare for an array of events, connected to such things as climate change, technological disruptions and actions by a hostile state. One of the key recommendations of the “Be Ready” campaign is that people stockpile supplies of food and essentials in case of multi-day emergencies.

The Met Office began naming major storms in 2015 as a way to keep the public informed about severe weather. Storms are named in alphabetical order throughout the season, which runs from September to the following August.

Britain's Prime Minister Andy Burnham speaks during the inaugural Wildfires '27 Resilience Summit on strengthening community preparedness, at the National Resilience Centre of Excellence, in Aintree, England, Friday Oct. 23, 2026. (Temilade Adelaja/Pool Photo via AP)

A banner advising against swimming on the beach at Black Rock in Brighton, England, Friday, Oct. 23, 2026. (Jamie Lashmar/PA via AP)

Waves crash on to the beach at Black Rock in Brighton, England, Friday, Oct. 23, 2026. (Jamie Lashmar/PA via AP)