The Argentine government gathered funds to cover a US$4.2 billion maturity on July 9 at an average cost of 6.7%.
Economy Minister Luis Caputo chose alternative routes instead of issuing in international markets. According to central bank data, the Treasury already holds around US$3.6 billion in dollar deposits, covering about 85% of the payment.
The remainder will come from local dollar placements, central bank purchases and multilateral financing. On Monday the country announced it will seek up to US$5 billion with support from entities such as the World Bank and the Inter-American Development Bank, at an estimated cost of 6.5%.
Analysts from Balanz Capital and PPI said the strategy saved about 200 basis points compared with an issuance on Wall Street. Country risk now stands at around 430 basis points after recent credit rating improvements.
