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Investing.com -- A planned $20 billion bailout for Argentina from JPMorgan Chase, Bank of America and Citigroup has been shelved in favor of a smaller, short-term loan package to support the financially distressed government, according to a report from the Wall Street Journal.
The major banks are now focusing on plans to lend Argentina approximately $5 billion through a short-term repurchase or "repo" facility, according to people familiar with the matter. Under this arrangement, Argentina would exchange a portfolio of investments for dollars from the banks.
Argentina is expected to use these dollars to make an upcoming debt payment of around $4 billion in January.
The original bailout was part of a larger financial support package announced by Treasury Secretary Scott Bessent and the Trump administration this fall. The package included a $20 billion currency swap with the U.S. Treasury Department and plans for a separate $20 billion bank-led debt facility, aimed at bolstering Argentine President Javier Milei’s pro-reform party.
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