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Argentina Negotiates $6–$7 Billion Bank Backstop as January Bond Payments Loom

Caputo says he aims to refinance in markets if country risk drops toward 300 basis points, using the credit only to prevent a hit to reserves.

Overview

  • Economy Minister Luis Caputo confirmed talks with private banks for a $6–$7 billion facility designed to cover January obligations without reducing international reserves.
  • January 2026 maturities are estimated at roughly $4.2–$4.7 billion across private bondholders, the ANSES FGS and the central bank.
  • La Nacion reports JP Morgan, Bank of America and Citi are in discussions, with a repo-style structure under consideration that would sit at the Treasury.
  • Markets responded positively to the signals, with the country-risk gauge easing to about 636–639 basis points and Argentine equities and ADRs posting gains of up to 9%.
  • Caputo prefers market issuance if spreads compress toward 300 bps and is evaluating buybacks, targeted exchanges and swaps; he also rejected reports of a $20 billion bank loan.