US EditionU.S. banks shelve $20 billion bailout plan for Argentina
Major U.S. banks reduced planned financing for Argentina to a $5 billion repo facility due to risk concerns, replacing a previously proposed $20 billion private credit line, sources said.
- U.S. banks put on hold a proposed private-sector $20 Billion lifeline for Argentina and are instead working on a smaller short-term package of about $5 billion.
- Banks balked at the size and risk given Argentina's repeated defaults and fragile public finances, while Wall Street demanded hard collateral and credible institutions over political sympathy from Washington.
- The proposal centered on a repo facility of about $5 billion where Argentina temporarily swaps assets for dollars, building on a prior U.S. Treasury's Exchange Stabilization Fund swap approved by the Trump administration.
- Argentina faces a looming debt payment in January, leaving it exposed as the private rescue shrinks, while for Javier Milei, President of Argentina, the downsized deal is both a warning and a test.
- If completed, the combined public and private measures could have provided up to $40 billion, while officials touted the operation as stabilizing and `turning a profit for U.S. taxpayers`.
45 Articles
45 Articles
According to the Wall Street Journal, several US banks have decided to backtrack the $20 billion loan they were negotiating with Buenos Aires. Bankers would now prefer a smaller loan in the short term.
The temporary coincidence between the cancellation of the credit and the jump of the Country Risk – which had fallen below 600 points – has generated questions about the neutrality of the index.
Buenos Aires.- Shareholdings in Argentina were moving downwards this Friday after international banks withdrew from a mega credit to the government, in a reduced round following an optional holiday that kept exchange and extra-bursatile bond squares closed. The $20 billion bailout plan for Argentina by JPMorgan Chase, Bank of America and Citigroup was postponed, after bankers opted for a smaller short-term loan package, the Wall Street Journal r…
Six numbers you need to know today
$20 billion: Argentine President Javier Milei had a fantastic midterm election last month, but the celebration might be coming to an abrupt end: A group of US banks shelved its $20-billion bailout plan for the South American nation, favoring instead a short-term loan package.6: A group of six US Democratic lawmakers published a video telling military and intelligence officials that they must disobey illegal orders. The move irked President Donal…
U.S. Banks Scrap $20 Billion Lifeline For Argentina, Offer Smaller Fix
The massive Wall Street rescue that was supposed to anchor Javier Milei’s economic turnaround is shrinking fast. A plan under which JPMorgan Chase, Bank of America and Citigroup would mobilize up to $20 billion in financing for Argentina has been put on hold, with the banks instead working on a much smaller short-term package of […]
According to The Wall Street Journal, private banking no longer considers the mega package viable and explores a shorter and much smaller credit: US$5 billion.
Coverage Details
Bias Distribution
- 42% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
