June 18th, 2025
1. Government again records a primary surplus but has to raise rates
The Government announced that in June the national public sector ended with a primary surplus of $790.53 billion and a financial surplus, after debt interest payments, of $551.23 billion. Thus, in the first half of the year, the Executive Branch recorded a primary surplus of 0.9% of the GDP and a total surplus of 0.4% when interest is added. On the other hand, the Government achieved its goal of raising a little over $4.7 billion from the market. The Central Bank (BCRA) was forced to urgently withdraw from circulation to correct the liquidity surpluses that had given strong volatility to rates and helped the dollar to sustain its rise. Of course, in order to achieve this, it had to validate interest rates ranging from 40.91% to 47.81% nominal annual rate (2.90% to 3.31% monthly) for placements ranging from a fortnight to three months.
2. Inflation and basic food basket data released
June inflation was 1.6% and remained at a similar level with respect to the previous month, Indec reported on Monday. Thus, last year’s price increase reached 39.4%. According to the official report, accumulated inflation in the first half of the year was 15.1 percent. Likewise, the cost of the Total Basic Food Basket (CBT) rose 1.6% in June, while the Basic Food Basket (CBA) rose 1.1%.
Infobae: La inflación de junio fue 1,6% y acumuló 39,4% en el último año
3. Government officially restructures the Treasury Procurator’s Office
After the allegations of leaks of confidential information of the YPF trial taking place in New York, the government made official the approval of a restructuring of the National Treasury Procurator’s Office, which not only establishes changes in the organization chart but also eliminates agencies that until now were part of the Office. The restructuring, as well as the dismissal of 60 officials, had been anticipated by the government. “It responds to a greater efficiency of the agency,” the Treasury Attorney’s Office had warned to justify the reduction in the staff decided by the Executive. The decision stems from dissatisfaction with an alleged leak of information around the trial for the nationalization of YPF, in which the state’s lawyers are trying to stop the resolution of New York judge Loretta Preska to deliver 51% of the shares of the state-owned oil company to the plaintiffs.
4. Milei meets with agricultural sector
President Javier Milei, together with Karina Milei, Secretary General of the Nation, met with representatives of the Mesa de Enlace (SRA, Coninagro, FAA and CRA) at the Quinta de Olivos and later at La Rural, as part of the preparations for Expo Rural 2025. During this meeting, Milei listened to the main claims of the agricultural sector: the high tax burden, especially export taxes, and the lack of investment in infrastructure. Although Milei acknowledged the financial fragility of the rural sector and even stated that withholding taxes “are in his sights” and would be the next tax to be reduced, he could not commit himself to an immediate reduction, but was concise: “he did not assure us anything… but he did say that they are looking at the possibility of implementing something else.” The sector values it as an important gesture to rebuild confidence, but warns that fiscal uncertainty, together with the lack of works in roads and logistics, could lead to lower investment and a drop in production by 2026 if concrete actions are not defined.
5. 31 years after the AMIA bombing, President Milei participated in the ceremony in honor of the victims
At the corner of Pasteur and Viamonte, the Jewish community commemorated today at 9:53 a.m. the thirty-first anniversary of the bombing of the AMIA headquarters, and remembered the 85 fatal victims and the hundreds of wounded of the second and deadliest attack of fundamentalist terrorism on Argentine soil. As last year, President Javier Milei was among the attendees, accompanied by most of his cabinet. In addition to paying tribute to the victims, Milei reaffirmed his support to the State of Israel, which, like the Argentine justice system, maintains that Iran was behind the attack of July 1994, which reduced the community building to rubble and injured nearly 300 people.