The bolt holds the idler arm in the bushings, which are worn out. Could just be a loose bolt, too.
Tighten to correct torque -- I'd guess something like 15 ft/lbs. Should be a self-locking nut.
If still loose, replace bushings by removing bolt and prying/driving out the old ones, reverse for installation of new ones.
Peter
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1972 220D ?? miles
1988 300E 200,012
1987 300D Turbo killed 9/25/07, 275,000 miles
1985 Volvo 740 GLE Turobodiesel 218,000
1972 280 SE 4.5 165, 000 - It runs!
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