US banks shelve US$20 bil bailout plan for Argentina.
A planned US$20 billion (RM82.93 billion) bailout for Argentina from JPMorgan Chase, Bank of America and Citigroup has been shelved as bankers pivot instead to a smaller, short-term loan package.
In October, the US Treasury reached a US$20 billion exchange-rate stabilisation agreement with Argentina, to be paired with a bank-led debt facility for the same amount. The deal came just days ahead of a midterm election that was crucial for Argentina’s libertarian president, Javier Milei.
Bankers now say the debt facility is no longer under serious consideration. Instead, lenders are planning to loan Argentina around US$5 billion through a short-term repurchase, or “repo” facility, it said.
Bank of America, Citi and JPMorgan declined to comment.
JPMorgan chief executive officer Jamie Dimon told Reporter earlier this month that a potential loan from the banks to Argentina “may not be necessary,” but the lender could be open to extending the nation special financing.
Argentina’s economy ministry did not immediately respond to a request for comment.
The funds would go towards a roughly US$4 billion debt payment due in January, adding that talks were still in initial stages and could change or fall through.
US President Donald Trump and Treasury Secretary Scott Bessent have been staunch backers of Milei.
While Milei’s administration has steadily brought inflation down from triple-digit year-over-year rises, reserves are tight and the government was quickly burning through dollars before the US backing.
Source: Theedgemalaysia
