US Treasury Secretary Scott Bessent has stated that Washington is working to ascertain a $20 billion “facility” to help Argentina’s struggling financial system, with backing from personal banks and sovereign wealth funds.
“We’re engaged on a $20 billion facility that will be adjoining to our swap line, of personal banks and sovereign wealth funds that I feel could be extra aimed on the debt market,” Bessent advised reporters in Washington.
He stated the ability would come along with the $20 billion swap line already arrange by the US Treasury with Argentina, bringing whole help to round $40 billion.
Bessent stated he had spent weeks engaged on the private-sector answer to assist Buenos Aires meet its debt obligations.
His remarks boosted Argentine markets, with shares on the Merval index rising almost 10 %.
The newest pledge of help underscores the administration of US President Donald Trump’s backing for Argentina’s right-wing populist chief, Javier Milei, who faces a key take a look at in midterm elections later this month.
Milei, who took workplace in 2023, applied sweeping spending cuts to curb inflation and stabilise the financial system, drawing fierce opposition and mass protests.
Final week, Bessent confirmed that the Treasury had already began buying Argentine pesos on international markets to help the foreign money.
Trump hosted Milei on the White Home on Tuesday, expressing robust help forward of the elections.
“If he loses, we’re not going to be beneficiant with Argentina,” Trump stated.
