Argentina's government has authorised up to $5bn in new borrowing from international financial institutions, a move designed to lower the Treasury's funding costs by leaning on guarantees from multilateral lenders rather than tapping bond markets directly ahead of looming debt payments.

The measure was set out in Decree 478/2026, published in the Official Gazette on June 22 and signed by President Javier Milei, Chief of Staff Manuel Adorni and Economy Minister Luis Caputo.

Under the decree, the Ministries of Finance and Treasury, which jointly oversee the public sector's financial administration, are empowered to negotiate dollar-denominated loans with international financial entities of recognised standing. The loans would carry partial guarantees from multilateral credit organisations including the World Bank, the Inter-American Development Bank (IDB) and Latin America's CAF development bank, a structure the government's economic team is using to secure lower interest rates than those available through a conventional Wall Street placement.

The groundwork for the financing is already under way. The World Bank has approved a $2bn guarantee scheme, while the IDB has authorised a further guarantee of up to $550mn, according to. Together, the backing is intended to support an operation that could mobilise as much as $1.2bn in private financing for the country.

Government officials said the credit lines, underpinned by multilateral guarantees, should allow Argentina to borrow at rates well below what it would currently face in a standard sovereign bond sale, a goal consistent with the financing targets set out under the country's programme with the International Monetary Fund, according to La Nación, which cited official sources.

New York jurisdiction, with carve-outs for strategic assets

A central feature of the decree is its authorisation to include clauses extending jurisdiction over the related contracts to state and federal courts in New York. Clarín and La Nación described this as standard practice for this category of sovereign borrowing, noting that Argentina's global bonds are likewise governed by New York law.

The provision amounts to Argentina waiving its right to invoke jurisdictional immunity in any legal disputes tied to the transactions, a condition often demanded by creditors and financial institutions to give them greater legal certainty.

The decree is explicit, however, that accepting foreign jurisdiction does not amount to waiving immunity from execution over a defined set of strategic assets. Those exclusions cover the reserves and accounts of the Central Bank, public domain assets, property tied to essential public services, diplomatic and consular assets, military equipment, items forming part of the nation's cultural heritage, and revenue from taxes and royalties owed to the national government, according to both outlets.

Economy Ministry granted broad operational powers

The decree also hands the Economy Ministry authority to set the terms, rates, currencies and other financial conditions of the borrowing operations. The ministry may select the participating financial institutions, appoint payment and registration agents, negotiate commissions, and sign all documentation needed to close the loans. The ministry may also contract fiscal agents or credit rating agencies as part of the process.

Analysts cited by Clarin believe that while the decree does not announce an immediate bond placement, it shows the government laying the administrative and legal groundwork for an announcement in the near term.