Argentina has fully repaid the $2.5 billion that it drew down from a $20 billion swap line with the Trump administration. This repayment was announced on January 9, 2026, and is seen as a boost for the Milei administration. In addition to the swap line repayment, Argentina has also made significant payments to bondholders, further demonstrating its commitment to financial stability.
The most recent major debt repayment occurred on January 9, 2026, where Argentina paid $4.3 billion to holders of its sovereign bonds. This payment met the deadline and aimed to restore investor confidence and regain access to international capital markets. The funds for this payment came from the Treasury, proceeds from the privatization of dams, and a $3 billion repurchase agreement (repo) with international banks at a rate of 7.4% that used dollar-denominated local bonds as collateral. Economy Minister Luis Caputo highlighted that this payment, which used $3 billion to pay off $4.2 billion, reduced the country's debt, though this claim was debated by some economists.
Market reaction to the $4.3 billion payment was positive, with Global and Bonares bonds rising by 0.7% and JP Morgan's country risk index for Argentina falling by eight basis points to 567. Analysts noted that investors had largely anticipated Argentina would meet this obligation. The Milei administration is committed to signaling stability as more substantial repayments, including an approximate $850 million to the International Monetary Fund (IMF) in February, loom. The country's country risk premium has narrowed significantly to around 560 basis points, its lowest level in eight years, indicating improved market confidence despite a history of defaults.
Argentina also faces a significant foreign-currency debt test with over $23 billion in principal payments due in 2027, or more than $32 billion including interest, according to IMF figures. This coincides with the year President Javier Milei is expected to seek re-election. However, investors are becoming more optimistic about Argentina's ability to manage these payments due to the government's fiscal discipline, a resumption of central bank dollar purchases, and securing alternative, low-cost financing. The government has focused on local-law dollar bonds, repo transactions, and multilateral-backed financing to meet hard-currency needs and avoid expensive international bond issuance.
