UPDATE 1-Argentina June primary fiscal deficit shrinks to 37.2 mln pesos
(Adds background, context)
BUENOS AIRES Aug 20 (Reuters) - Argentina posted a primary fiscal deficit of 37.2 million pesos ($4 million) versus a deficit of $286.8 million pesos in June 2014, the economy ministry said in a statement early on Thursday.
The primary balance, which measures government spending relative to income and does not include debt interest payments, is followed closely by the markets as an indicator of Argentina's ability to meet its financial obligations.
The South American grains exporting country has been virtually locked out of the international capital markets since its 2002 sovereign bond default.
(Reporting by Juliana Castilla and; Jorge Otaola Editing by W Simon)
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