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Argentina Pays Billions, Eyes Market Return
10 Jan
Summary
- Argentina settled $4.3 billion in sovereign bond payments.
- The payment occurred despite low foreign reserves.
- A new repo agreement with banks aids debt coverage.
Argentina has fulfilled its obligation by paying $4.3 billion to sovereign bondholders on January 9, 2026. This significant transaction occurred despite the nation facing critically low foreign reserves, highlighting a strategic move to rebuild investor trust and access global financial markets again. The government is actively working to project an image of stability.
The administration of President Javier Milei is prioritizing market confidence as a series of substantial repayments to bondholders and multilateral lenders are scheduled throughout the year. A notable upcoming payment of approximately $850 million to the International Monetary Fund is due in February 2026. To manage these financial commitments, authorities recently arranged a one-year repurchase agreement with six international banks.
To support its debt obligations, Argentina utilized dollar-denominated local bonds maturing in 2035 and 2038 as collateral for the repurchase agreement. Proceeds from the December 2025 privatization of four hydroelectric power plants are also reported to have contributed to covering these expenses. The central bank has also initiated a program to more predictably build reserves, making its first dollar purchase in nine months recently.
