US EditionWorld Bank Plans up to $2 Billion Guarantee to Help Argentina Refinance ...
The guarantee would help refinance debt at about 5%, nearly half Argentina’s current bond yields, according to Bloomberg.
- On Thursday, The World Bank Group announced it is working on a guarantee of up to $2 billion to help refinance a portion of Argentina's debt, subject to Board of Executive Directors approval.
- Economy Minister Luis Caputo is negotiating a six-year loan at roughly 5% interest, nearly half the 9%+ yield Argentina faces on international bond markets, using a structure Panama deployed earlier this year.
- This World Bank-backed loan forms the third layer in a financing fortress assembled by Caputo, joining a $20 billion IMF Extended Fund Facility and a $20 billion Treasury swap line.
- Combined commitments exceed $45 billion, enough to cover Argentina's 2026 debt maturities without returning to international capital markets, where the country's credit rating remains deep into 'junk' status.
- By avoiding bond markets while spreads remain above 500 basis points, Caputo preserves optionality to issue debt at tighter rates later, having met with World Bank President Ajay Banga on Thursday.
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Argentina’s $2B World Bank Loan Adds Third Layer to Milei’s Financing Fortress
Key Points — Argentina is negotiating a US$2 billion loan from private banks backed by World Bank guarantees — the IBRD and MIGA — at roughly 5%, nearly half the 9%+ yield Argentina faces on international bond markets — The six-year loan with a three-year grace period uses the same IBRD/MIGA guarantee structure that Panama […] The post Argentina’s $2B World Bank Loan Adds Third Layer to Milei’s Financing Fortress appeared first on The Rio Times.
The funding would be in addition to Argentina's existing program with the IMF, worth US$20 billion.
World Bank prepared to guarantee up to $2 billion in loans for Argentina - Argentina Reports
World Bank President Ajay Banga (left) with Argentina’s Economy Minister Luis Caputo (right) Image Source: Luis Caputo via X Buenos Aires, Argentina – The World Bank announced on Thursday that it is preparing to back up to US$2 billion worth of loans in order to help Argentina refinance its debt at a lower cost. The loans – which Argentina is negotiating with private banks – would be repayable over six years, and would be almost fully backed by …
The Government is moving forward with a World Bank-guaranteed financing scheme that aims to reduce the fees paid by Argentina, amid a context of improvement in the country’s risk. However, the strategy revives a sensitive precedent: a similar operation carried out in 1998 that ended up affected by the 2001 default. The initiative envisages a guarantee of about USD 2 billion that would allow debt to be issued under better conditions, with support…
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