After seven years, Argentina returns to the global debt markets. Top international banks will lend the country US$ 3 billion, backed by bonds, according to official sources. The operation, which is about to be realized, aims to ensure debt payments for the coming year and potentially reduce country risk.
The loan will be executed through a REPO with three international banks: Santander, JP Morgan, and Morgan Stanley, over a period of three years. The Central Bank of the Argentine Republic (BCRA) will offer as collateral the Bonds for the Reconstruction of a Free Argentina (Bopreales), in a negotiation that included a request for a rate cut from the country.
In preparation for this financial move, Argentina has already deposited US$ 1.7 billion in the Bank of New York for upcoming coupon interest and has acquired US$ 2.7 billion in capital in dollars and euros. The government expects to secure fresh funds of approximately US$ 10 billion in March of next year, through a new agreement with the International Monetary Fund (IMF).
In the words of the Minister of Economy, Luis Caputo, this transaction is a signal to strengthen the country's reserves. The delay in implementing the loan has led to a postponement in its realization, which is now expected to be completed before December. With next year's legislative elections on the horizon, the government seeks to strengthen its position in Congress and ensure long-term financial stability.
