$20bn extra bail out for Argentina – banks say No

U.S. banks have abandoned plans for a large, multi-year $20 billion bailout package for Argentina, according to the Wall Street Journal. The proposal, which had been under discussion as part of wider financial support for President Javier Milei’s stabilisation agenda, has been deemed unworkable given Argentina’s deteriorating fiscal position and limited creditor appetite.

Instead, bankers are now exploring a far smaller, short-term financing facility aimed solely at helping Buenos Aires meet a looming debt obligation of about $4 billion due in January. The stop-gap measure would buy Argentina time but falls well short of the broader external support officials had hoped to secure. The shift underscores rising concern among lenders about Argentina’s financing risks and the government’s ability to execute its reform programme.