Argentina has repaid the full $2.5bn it drew from a $20bn US currency swap line arranged with the Trump administration, according to reporting and US Treasury comments. The repayment comes after a bout of market stress and is being framed by President Javier Milei’s government as a sign of improving financial stability ahead of Argentina’s pivotal October election. Separately, Argentina also made key payments to bondholders, helping reinforce its message of continued debt servicing and access to funding.
Highlights:
- Swap line size: US officials des...
Argentina has repaid the full $2.5bn it drew from a $20bn US currency swap line arranged with the Trump administration, according to reporting and US Treasury comments. The repayment comes after a bout of market stress and is being framed by President Javier Milei’s government as a sign of improving financial stability ahead of Argentina’s pivotal October election. Separately, Argentina also made key payments to bondholders, helping reinforce its message of continued debt servicing and access to funding.
Highlights:
- Swap line size: US officials described the facility as a $20bn swap line that Argentina tapped during market turbulence and has now fully repaid.
- Treasury’s position: US Treasury Secretary Scott Bessent said the US no longer held pesos in its exchange stabilisation fund after the operation.
- Bondholder signal: Bloomberg reported the government’s swap repayment coincided with payments to bondholders, a step investors often watch for signs of policy follow-through.
- Election backdrop: The Financial Times noted the repayment lands ahead of Argentina’s October election, when economic confidence and market access are likely to be central issues.
Perspectives:
- US Treasury (Secretary Scott Bessent): Bessent characterized the US’s Argentina peso trade as a successful outcome and said the US no longer holds pesos in the exchange stabilisation fund. (BBC)
- Argentina (Milei administration): Argentina’s repayment of the swap drawdown is presented as evidence it has navigated recent market stress and is stabilizing financing conditions heading into the October election. (Financial Times)
- Bond investors: Investors received additional reassurance from Argentina making key bondholder payments alongside the swap repayment, supporting perceptions of continued debt servicing. (Bloomberg)
Sources:
- Argentina repays US financial lifeline as Milei emerges from market crisis - ft.com
- Argentina Pays US Swap Line, Bondholders in Boost for Milei - bloomberg.com
- Argentina repays U.S. swap draw, Treasury Secretary Bessent says (ARGT:NYSEARCA) - Seeking Alpha - google.com
- US calls Argentina peso bet a 'homerun deal' - bbc.com