Argentina Lines Up $3 Billion Bank Repo to Meet Jan. 9 Debt Payment

Overview

• The central bank said the agreement with a group of banks totals $3 billion for 372 days at 7.4%, collateralized by dollar sovereign bonds assembled through a recent debt swap.
• Argentina faces a $4.3 billion principal-and-interest payment due on January 9, which officials are preparing to cover without issuing new bonds abroad.
• The Treasury purchased about $700 million in U.S. dollars sourced from hydropower privatization proceeds via off-market block trades, according to a person familiar with the transactions.
• The central bank resumed foreign-exchange purchases for the first time in nine months, buying $21 million on Monday and $83 million on Tuesday.
• The central bank reported $4.4 billion in offers for the repo and accepted $3 billion, while policymakers retain contingency tools such as a $20 billion U.S. swap line and investors show cautious confidence with 2030 bonds near 85.5 cents on the dollar.