Argentina’s US financing lifeline survives midterm shock, says EXIM chief

The US Export-Import Bank (EXIM) will maintain its financial cooperation with Argentina and continue working on agreements that could mobilise up to $7bn in funding through 2027, its president John Jovanovic said, following the Republican Party's defeat in the US midterm elections, La Nación reported.

Jovanovic said the election result would not alter the bank's work with Argentina, arguing that employment, industrial production and supply-chain security remained shared priorities for Republicans and Democrats.

“The challenges we woke up to yesterday morning in the Western Hemisphere are the same challenges we have today,” he said during an event organised by the Atlantic Council in Washington.

“We continue working normally with the Build the Future agreements, such as the one we have with Argentina. We only plan to expand that,” he added.

The EXIM chief was referring to a framework agreement signed in September that provides for the mobilisation of up to $7bn in financing by 2027. The initiative is linked to the Andes-Atlantic Corridor, which aims to connect energy resources in the Vaca Muerta shale formation and critical minerals in north-western Argentina with Atlantic ports and international markets.

Jovanovic described the programme as an example of bipartisan cooperation in Washington, saying its objectives extended beyond electoral cycles. He also encouraged companies to pursue opportunities in Argentina, arguing that the country's potential would remain relevant regardless of political changes in the United States.

“The opportunity in Argentina will transcend these electoral cycles,” he said.

The bank is also evaluating direct lending for a project led by state-controlled oil company YPF. Jovanovic referred to a previously announced $6bn credit authorisation for the Argentina LNG initiative, but did not announce additional financing or confirm a new approval.

“We continue to increase our commitment there because the opportunity is becoming more attractive and because the right capital providers are coming to the table,” he said, adding that EXIM seeks to mobilise at least one dollar of private investment for every dollar it contributes.

Jovanovic acknowledged that Argentina's history of sovereign defaults continued to affect investment decisions. He said the bank's role was to help attract private capital and improve perceptions of the country's investment opportunities.

The US election result, which dealt a heavy blow to Donald Trump's MAGA twist on the Republican party, has raised questions about the future of financial and economic cooperation between Washington and Buenos Aires, particularly given President Javier Milei's close relationship with the US leader.

Economy Minister Luis Caputo said the Republican defeat would not change Argentina's relationship with the United States or necessarily affect the possibility of further financial assistance in 2027. He made the comments at an event organised by the Latin American Economic Research Foundation (FIEL) in Buenos Aires, Infobae reported.

“I think nothing changes for Argentina. It was expected, perhaps not by such a large margin. The relationship will not change,” Caputo said.

The minister also rejected suggestions that a change in US political control would automatically prevent Washington from providing financial support to Argentina. A report by consultancy Portfolio Personal Inversiones said the US Treasury could use the Exchange Stabilization Fund (ESF) to commit resources with presidential approval, without requiring a new congressional vote.

Facimex reached a similar conclusion, although it warned that Democratic control of Congress could increase the political cost of extending assistance. The firm also said improved global financial conditions, including lower risk-free interest rates and a weaker dollar, could benefit Argentine assets despite the political implications of Trump's defeat.

Caputo separately argued that exchange-rate movements were not the main determinant of Argentina's competitiveness. He said the government was preparing for possible currency pressure but expected a more stable economic environment in 2027.

In a broader assessment of the bilateral relationship, the election outcome has placed several pending trade and financial issues under scrutiny, including the currency swap, investment financing, market access, intellectual property protections and the YPF litigation in the US Supreme Court, Clarín reported.

The existing currency swap, extended in October 2025 by the US Treasury, provides for around $18bn in available funds. Other potential sources of US financing include up to $20bn through the International Development Finance Corporation (DFC) and between $7bn and $10bn through EXIM, mainly for energy and infrastructure projects.

The Reciprocal Trade and Investment Agreement signed in February remains pending ratification by Argentina's Congress. The arrangement covers market access, digital trade, patents and investment.

The YPF case, involving the Argentine state-run oil company, is another point of uncertainty. Around 15 US states governed by Republicans have filed court submissions supporting the plaintiffs seeking to hold Argentina liable for $16.1bn plus interest over the nationalisation of the oil company.

Despite the political changes in Washington, Kezia McKeague, managing director of McLarty Associates, said she did not expect a major impact on bilateral relations over the next two years, according to La Nacion, arguing that foreign and trade policy decisions rested with the US executive branch.