The U.S. government has told American companies operating in Argentina that there could be funds available for financing of up to $30 billion.
The news comes after the Andes-Atlantic Corridor agreement was signed, under which Eximbank, the U.S. export-import bank, announced financing of $7 billion for strategic projects. The financing is aimed at exports and imports generated by companies from that country.
Later, the U.S. ambassador to Argentina, Peter Lamelas, said there could be $20 billion in financing through 2027, in a show of support for President Javier Milei.
However, during the recent visit of U.S. Undersecretary of State Cristopher Landau, the delegation told companies that the International Development Finance Corporation (DFC) had the capacity to finance investments in the country for $20 billion, an option that is under review. That amount would represent 10% of the DFC’s total financing capacity.
At the same time, Eximbank is reviewing whether to improve Argentina’s category within its portfolio, which would open the door to financing of up to an additional $10 billion.
That was reported by Alejandro Diaz, president of the American Chamber of Commerce in Argentina (Amcham). However, both options are under review.
The financing mechanism would range from disbursements to guarantees and insurance. This could also attract additional financing since, in the case of the DFC, the agency does not operate as the sole lender, but instead sets maximum limits by project. It would also help channel other sources of financing with the agency’s backing.
In addition, at least 25 projects by companies operating in Argentina are under review within the DFC. However, the distinction remains that funds will not be channeled to companies under state control, which does not rule out companies that have shareholders from state-controlled firms.
The sector in focus in this regard is partly logistics, given its importance for strategic sectors for Argentina but also those covered in treaties with the United States, such as critical minerals. Expectations are centered on copper and lithium in this area. Oil and gas production is also part of the picture.
The latter sector stands apart amid the noise generated in recent months around the economic program. Market figures say they are confident the swings in economic policy will not be repeated, but that they do not view the election with particular concern anyway.
While they want to preserve the policies that drove the sector’s expansion in recent years, including the Large Investment Incentive Regime (RIGI), they say Vaca Muerta was the only state policy that held steady in recent years, and argue that all their investments are designed for the long term, although they do not rule out that major changes in sector policy could prompt unease at parent companies.
The expectation is that the sector’s growth will ultimately turn the trade balance from a problem for Argentina into a nonissue, especially given the growing weight it has taken on within the export mix.