Updated at 6 p.m.<\/p>\n
U.S. banks JPMorgan Chase, Bank of America and Citigroup have called off a planned US$20 billion loan to Argentina, according to an article published on Thursday by The Wall Street Journal. Instead, bankers are discussing a new, short-term credit one-quarter the size.<\/p>\n
Minister Luis Caputo denied ever discussing a bailout with banks and said the news is meant to \u201cspread confusion.\u201d<\/p>\n
\nNunca hablamos con los bancos de un rescate, ni de 20 mil millones. Es una \u201coperaci\u00f3n\u201d m\u00e1s con la sola intenci\u00f3n de generar confusi\u00f3n. https:\/\/t.co\/XJqN9gB0Cj<\/a><\/p>\n
\u2014 totocaputo (@LuisCaputoAR) November 21, 2025<\/a><\/p><\/blockquote>\n
Reports of the US$20 billion bailout emerged last month, when U.S. Treasury Secretary Scott Bessent told journalists<\/a> that the private sector was planning to invest in Argentina\u2019s sovereign debt. Previously, the U.S. had arranged for a US$20 billion currency swap for Javier Milei\u2019s administration, meaning that the total aid package would have been US$40 billion.<\/p>\n
\u201cIt is a private sector solution to Argentina\u2019s upcoming debt payments,\u201d Bessent told the press in October, ahead of the midterms. \u201cWe\u2019ve actually been working on it for weeks.\u201d<\/p>\n
However, bankers are now saying it is \u201cno longer under serious consideration,\u201d the Wall Street Journal reported, citing people familiar with the conversations.<\/p>\n
A spokesperson for Argentina\u2019s economy ministry did not immediately respond to the Herald\u2019s request for comment. Answering an X user who shared the article and asked \u201cWhat the [expletive] is this?,\u201d Economy Minister Luis Caputo replied \u201cExcellent question.\u201d<\/p>\n
He then went on to clarify that the government \u201cnever discussed a bailout with the banks, not about 20 billion. It\u2019s just another \u2018operation\u2019 intended solely to spread confusion.\u201d However, last month, Bessent mentioned a US$20 billion facility, adding that \u201cmany banks are interested in it and many sovereign funds have expressed interest in it.\u201d In a separate interview after Bessent\u2019s remarks, Caputo said, \u201cwe are working in another US$20 billion facility\u201d on top of the U.S. currency swap.<\/p>\n
According to the newspaper, bankers have instead chosen to deliver a \u201csmaller, short-term loan package\u201d to support the financially distressed government. This new loan may be a US$5 billion repurchase agreement, also known as a \u201crepo\u201d facility. Under the arrangement, Argentina would exchange a portfolio of bonds for dollars from the banks.<\/p>\n
Argentina would then use the credit to cancel an upcoming debt payment of around US$4 billion in January, the New York-based outlet reported. Milei\u2019s government would later work with the banks to take on new debt and pay back the repo facility \u201clikely within months.\u201d However, talks are still in early stages and \u201ccould change or fall apart.\u201d\u00a0<\/p>\n
The U.S. Treasury assisted Argentina by selling dollars in the foreign exchange market ahead of the October 26 midterm elections, amid a currency run against the peso. The amount was never disclosed, but market sources calculate that the Trump administration put down well over US$2 billion in two weeks.<\/p>\n
Last week, U.S Treasury Secretary Scott Bessent confirmed that Argentina had activated<\/a> the currency swap offered by the Trump administration. The announcement put an end to days of speculation, as local economists argued that it had already happened despite no confirmation from local authorities.<\/p>\n
Analysts consulted by the Herald at the time speculated that the currency swap, which entails new debt for Argentina, was used to pay back the dollars the U.S. sold to stave off the pre-electoral run against the peso.<\/p>\n