U.S. Banks Scrap $20B Argentina Rescue As Treasury Guidance Stalls

Benzinga

A proposed $20B bank-led bailout for Argentina has been shelved as JPMorgan, Bank of America, and Citigroup pivot to a smaller $5B short-term repo facility. The new plan would help Argentina cover a $4B January debt payment, with repayment expected after new bond issuance. The original package tied to a Treasury currency swap is no longer under consideration as talks remain preliminary.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02A planned $20 billion bank-led bailout for Argentina has been shelved as J.P. Morgan,

00:07Bank of America, and Citigroup shift their focus to a smaller $5 billion short-term repo facility,

00:12according to The Wall Street Journal. Treasury Secretary Scott Besson and the Trump administration

00:16sought to support President Javier Malay's pro-reform party with a $20 billion treasury

00:21currency swap and a planned $20 billion bank-led debt facility. Banks had waited for Treasury

00:26Department guidance on acceptable collateral for the original package. The proposal is no longer

00:31under consideration. The new plan would provide Argentina with dollars to cover a $4 billion

00:35debt payment in January, with repayment expected once the country raises funds through new bond

00:40issuance. Discussions remain preliminary and could change. For all things money, visit Benzinga.com.

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