This additional stimulus package comes on top of a $20 billion currency swap and comes just before Argentina’s midterm elections.
U.S. Treasury Secretary Scott Bessent announced that the United States is working to bring in the private sector around a new $20 billion “facility” to support Argentina’s struggling economy.
“We’re working on a $20 billion facility adjacent to private bank and sovereign wealth fund swap lines that we think will be more targeted at the fixed income market,” he told reporters in Washington, D.C., on Wednesday.
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Bessent added that he had been working for “several weeks” on a private sector solution for Argentina’s upcoming debt payments. The debt payment will be on top of a $20 billion currency swap recently set up by the U.S. Treasury to support the country’s peso.
“So that’s a total of $40 billion for Argentina,” he said, sparking a rally in Argentine stocks.
Bessent’s comments mark the latest U.S. support for Argentina’s right-wing populist leader Javier Millei, whose party faces an uphill battle in midterm elections later this month.
After taking office in 2023, Millay enacted deep budget cuts aimed at curbing inflation and turning Argentina’s economy around, sparking intense opposition and widespread protests.
But US President Donald Trump, a fellow right-wing leader, has maintained close ties with Milley. In 2024, President Milley revealed that President Trump called the Argentine leader his “favorite president.”
On Tuesday, President Trump once again welcomed Milley to the White House to announce his support ahead of the election.
He also suggested that U.S. economic aid would depend on Milley’s continued success at the polls.
“If he wins, we will be very cooperative,” Trump said. “If he doesn’t win, we won’t waste any time because we have someone who, with his philosophy, has no chance of making Argentina great again.”
President Trump reiterated this idea multiple times during Tuesday’s meeting. “If he loses, we won’t be as lenient with Argentina,” he warned.
But in comments Wednesday, Bessent appeared to walk back some of the meaning of those remarks.
He vowed that the United States would continue to support Argentina financially, regardless of the outcome of this month’s elections, as long as President Milai’s government pursues “good policies.”
A strong show of support from the United States came this week on the sidelines of the annual meetings of the International Monetary Fund (IMF) and World Bank in Washington, DC.
The IMF has its own multibillion-dollar loan program with Buenos Aires and has supported bilateral U.S. aid to Argentina’s economy.
Milley said in a broadcast interview Wednesday that she was confident in U.S. financial support as long as she remained president. He also promised to maintain liberal policies.
“As we continue to advance the cause of freedom, our support is guaranteed until at least 2027,” he said, according to a voiceover from an English interpreter.
Economist Milley expressed hope that the midterm elections would give her a stronger base of support for her policies.
“I have no intention of changing policy until the end of my term,” he said. “I am fully committed to the challenge of lowering taxes, deregulation, and sustaining economic growth.”
Mr. Bessent said Mr. Milay would continue to enjoy U.S. support as long as he had the veto power to block legislation in Argentina’s parliament.
“It’s not election-specific. It’s policy-specific,” he said. “So as long as Argentina continues to implement good policies, it will have the support of the United States.”
