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Argentina’s Central Bank Secures $3 Billion Repo as Minister Denies New Debt

He calls the move net negative financing to cover a $4.2 billion payment due Friday.

Overview

  • The central bank announced a one-year repurchase agreement for $3 billion at an effective rate near 7.4% to address an imminent obligation.
  • The deal was placed with international financial institutions and drew offers of about $4.4 billion, above the amount taken.
  • According to details reported by Ámbito, the 372-day transaction involved six banks, used BONARES 2035 and 2038 as collateral, and was priced at SOFR plus 400 basis points.
  • Economy Minister Luis Caputo said $3 billion was obtained to cancel roughly $4.3 billion, arguing the operation reduces obligations rather than adds borrowing.
  • Caputo’s defense followed social media accusations of new debt, and his posts—also claiming the government ended the deficit and cut consolidated debt by $50 billion—were publicly backed by President Javier Milei, Senator Patricia Bullrich, and Chief of Cabinet Manuel Adorni.