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US financial giants, including Bank of America, JPMorgan Chase, and Citigroup, have “put on hold” plans for a large-scale $20 billion loan to Argentina. Instead, they have opted for a more specific, short-term agreement through a REPO mechanism for approximately $5 billion. As part of a broader US initiative that included a currency swap between the US Treasury and Argentina's central bank, the bailout plan provided for substantial support for the Argentine economy and stabilization of the national currency.
The rejection of a large loan package is already affecting the cryptocurrency market, as Argentina is one of the countries with the highest level of digital asset usage due to chronic inflation. And a new wave of financial uncertainty could push citizens to transition even more actively to crypto. In conditions of liquidity shortage and the risk of another fall in the peso, the population will traditionally look for alternative ways to preserve their savings.
Against this backdrop, analysts also draw attention to the political component: support for Argentina could be a sign of confidence in the reform course and an element of strategic cooperation with the US. Some observers even suggest that the terms of possible agreements could be tied to future elections, and the stabilization package should strengthen the government's position in international markets.
Institutional investors, on the other hand, may take a more cautious stance. Macroeconomic risks from large crypto users often increase market volatility, and even news can curb the inflow of capital into Bitcoin and stablecoins. If Argentina does not receive sufficient support, the likelihood of new currency shocks will increase, which traditionally fuel short-term speculation and make the market less predictable.
According to sources, despite numerous statements from the Argentine financial sector, the situation suggests otherwise: international banks are not prepared to take on excessive risks. The government is forced to look for new ways to stabilize the economy — less ambitious but more realistic. For Argentina, this choice could determine its economic trajectory for years to come.
The REPO scheme allows Buenos Aires to obtain dollars against the collateral of its investment portfolio and use them to repay urgent debts – the government plans to pay out about $4 billion next year and prepare for the issuance of new bonds. At the same time, banks are demanding maximum transparency and reliable guarantees, which raises questions among both financial experts and the Argentine opposition.