Scott Bessent announces historic $20 billion support package to help stabilize Argentina's economy

The Trump administration has signaled its readiness to provide substantial financial backing to Argentina as President Javier Milei works to stabilize the country’s economy...

The Trump administration has signaled its readiness to provide substantial financial backing to Argentina as President Javier Milei works to stabilize the country’s economy, Treasury Secretary Scott Bessent announced Tuesday.

Following extensive discussions between President Trump, Bessent, and Milei’s team in New York, the Treasury Secretary outlined a comprehensive support package for the South American nation.

“Under President Milei, Argentina has taken important strides toward stabilization,” Bessent wrote on social media. “He has achieved impressive fiscal consolidation and a broad liberalization of prices and restrictive regulations, laying the foundation for Argentina’s historic return to prosperity.”

The proposed assistance includes multiple financial mechanisms. “The @USTreasury stands ready to purchase Argentina’s USD bonds and will do so as conditions warrant,” Bessent stated. “We are also prepared to deliver significant stand-by credit via the Exchange Stabilization Fund.”

Central to the support package is a major currency arrangement. “The Treasury is currently in negotiations with Argentine officials for a $20 billion swap line with the Central Bank,” Bessent revealed, adding that the U.S. is “working in close coordination with the Argentine government to prevent excessive volatility.”

The Treasury Secretary emphasized the administration’s commitment extends beyond immediate financial assistance. “In addition, the United States stands ready to purchase secondary or primary government debt,” he said, while noting efforts to “end the tax holiday for commodity producers converting foreign exchange.”

Bessent framed the support as part of a broader geopolitical strategy, stating that “Argentina has the tools to defeat speculators, including those who seek to destabilize Argentina’s markets for political objectives.” He also mentioned that “numerous US companies” intend to make “substantial foreign direct investments in Argentina” contingent on favorable election outcomes.

The announcement reflects President Trump’s personal endorsement of Milei’s leadership. “President Trump has given President Milei a rare endorsement of a foreign official, showing his confidence in his government’s economic plans and the geopolitical strategic importance of the relationship between the United States and Argentina,” Bessent noted.

Looking ahead, the Treasury Secretary indicated that implementation would begin quickly. “Immediately after the election, we will start working with the Argentine government on its principal repayments,” he concluded. “I will be watching developments closely, and the Treasury remains fully prepared to do what is necessary.”

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