Argentine policy-makers are negotiating with major international banks to extend maturities on repurchase agreements – or repos – to ease the government debt burden going into the 2027 election year.
President Javier Milei’s government is in talks with banks to collapse the three repos it negotiated since 2025 into a single one worth at least US$5 billion due in 2028 or later, after the presidential race, said two people familiar with the matter. Those banks expect the operation, which is not final, to come together within a month, the people said. The interest rate has not yet been set.
In a recent meeting with investors, Central Bank Governor Santiago Bausili sought to allay concerns about repo maturities, saying officials were working on a solution ahead of time, according to another person familiar with the matter, who requested anonymity to discuss the private conversation.
Argentina’s Central Bank did not immediately respond to a request for comment.
Argentina most recently landed a US$3-billion repo led by Santander, BBVA and Deutsche to help make January bond payments. The nation has more than US$20 billion in debt maturities in 2027, according to Barclays, an imposing figure given it’s also an election year and market turmoil can’t be ruled out.
In mid-2025, the Milei administration signed a two-year, US$2-billion repo loan with international banks set to mature in 2027, on top of a similar US$1-billion, two-year deal signed earlier.
“Our financial programme is practically covered in its totality,” Economy Minister Luis Caputo said at a May 8 press conference. “At most, next year we may have to refinance some US$2 billion to US$2.5 billion. If the market is at a reasonable level, we may go to market. But as I always say, we are exploring alternative sources of financing.”
Argentina’s latest credit upgrade has fuelled bets that the country will get another shot at tapping international markets after missing a window in early 2026.
by Manuela Tobias, Bloomberg
Comments