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Argentina Covers $4.2 Billion Bond Payment as Milei Dismisses Default Warnings

Officials say the dollars came from privatization proceeds, Treasury cash plus a one‑year central‑bank repo that provides short‑term liquidity at roughly 7.4%.

Overview

  • The government confirmed it met a roughly $4.218 billion maturity owed to private bondholders, noting $692 million held by the public sector did not require a net dollar outflow.
  • Funding included about $2.3 billion from the sale of southern hydroelectric assets and roughly $1.2–$1.3 billion drawn from a central‑bank repo, with the balance from Treasury deposits.
  • The Banco Central’s repo totals $3.0 billion for 372 days at SOFR plus 400 basis points (about 7.4% annually), drew around $4.4 billion in offers, and involved BBVA, JPMorgan, Deutsche Bank, Goldman Sachs, Bank of China and Santander.
  • Payments covered Global (New York‑law) and Bonar/Bonares (local‑law) dollar bonds and euro‑denominated issues, with PPI estimating $4.382 billion in maturities split between principal and interest.
  • President Javier Milei hailed the payment on X and criticized economists who forecast a default, amplifying Juan Ramón Rallo’s argument that the operation constitutes refinancing rather than new borrowing.