BUENOS AIRES (Reuters) -Argentine officials did not speak with U.S. banks about a $20 billion rescue package, the country’s economy minister, Luis Caputo, said on Friday in a post on social media. Caputo made the comments after the Wall Street Journal reported on Thursday that a planned $20 billion bailout for Argentina from JPMorgan Chase, […]
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Argentina did not discuss $20 billion bailout with banks, minister says
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BUENOS AIRES (Reuters) -Argentine officials did not speak with U.S. banks about a $20 billion rescue package, the country’s economy minister, Luis Caputo, said on Friday in a post on social media.
Caputo made the comments after the Wall Street Journal reported on Thursday that a planned $20 billion bailout for Argentina from JPMorgan Chase, Bank of America, and Citigroup , had been shelved as bankers pivot instead to a smaller, short-term loan package.
“We never spoke with the banks about a bailout, nor about 20 billion. It’s just another ‘operation’ whose only purpose is to create confusion,” Caputo wrote on X.
In October, the U.S. Treasury reached a $20 billion exchange-rate stabilization agreement with Argentina, to be paired with a bank-led debt facility for the same amount. The deal came just days ahead of a midterm election that was crucial for Argentina’s libertarian president, Javier Milei.
Bankers now say the debt facility is no longer under serious consideration, the Wall Street Journal reported, citing people familiar with the matter. Instead, lenders are planning to loan Argentina around $5 billion through a short-term repurchase, or “repo,” facility, it said.
(Reporting by Eliana Raszewski; Writing by Brendan O’Boyle, Editing by Natalia Siniawski)