A planned $20 billion bailout for Argentina from JPMorgan Chase, Bank of America, and Citigroup has been put on hold, with the banks now considering a much smaller and short-term funding option, according to a report from the Wall Street Journal. The previously discussed package was meant to complement a U.S. Treasury-backed exchange-rate stabilization agreement announced in October, just ahead of a pivotal midterm election for President Javier Milei.
Sources cited in the report said the large-scale debt facility is no longer being seriously pursued. Instead, the lenders are exploring a short-term $5 billion repurchase (“repo”) loan designed to help Argentina meet a roughly $4 billion debt payment due in January. Talks remain at an early stage and could shift or fall apart, the report added. When asked for comment, JPMorgan, Bank of America, and Citigroup declined to respond.
Argentina continues navigating economic pressure despite recent success in reducing runaway inflation. JPMorgan CEO Jamie Dimon recently suggested the full loan package might “not be necessary,” though he indicated openness to special financing for the country. While Milei has received strong backing from U.S. President Donald Trump and Treasury Secretary Scott Bessent, Argentina’s reserves remain tight, and the government had been depleting dollars rapidly prior to U.S. support.
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