U.S. Banks Shelve $20 Billion Bailout Plan for Argentina [View all]

Source: Wall Street Journal

Bankers are instead discussing a smaller, short-term facility to help Argentina make a roughly $4 billion debt payment in January

A planned $20 billion bailout to Argentina from JPMorgan Chase, Bank of America, and Citigroup has been shelved as bankers pivot instead to a smaller, short-term loan package to support the financially distressed government, people familiar with the matter said.

Treasury Secretary Scott Bessent and the Trump administration had been seeking to bolster Argentine President Javier Milei’s pro-reform party when they announced a pair of financial lifelines this fall. The package included a $20 billion currency swap with the U.S. Treasury Department and plans for a separate $20 billion bank-led debt facility.

The bailouts were announced when Milei’s government seemed under pressure, but congressional elections in October were seen as a resounding victory for his party. That result sent the country’s bonds and currency rallying.

The private-sector loan didn’t get off the ground as banks awaited guidance from the Treasury Department on what collateral and guarantees they could use to shield them from losses, The Wall Street Journal previously reported. Now, bankers are saying it is no longer under serious consideration, according to people familiar with the conversations.

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