US aims to raise $20bn ‘facility’ to support Argentina’s struggling economy
Key Takeaways
- The US Treasury is working on a new $20bn private sector facility to support Argentina's debt market.
- This new facility, combined with an existing currency swap, brings the total potential US financial backing for Argentina to $40bn.
- President Trump linked future US generosity to Javier Milei's success in the upcoming midterm elections.
- Treasury head Scott Bessent clarified that US support is contingent on Milei's government enacting 'good policies,' not solely on election results.
- Milei expressed confidence in maintaining US support as long as he adheres to his libertarian agenda of deregulation and tax cuts.
US Treasury head Scott Bessent revealed efforts to secure a new $20bn private sector facility, comprised of private banks and sovereign wealth funds, aimed at Argentina's debt market, which would be in addition to a previously established $20bn currency swap, totaling $40bn in potential support. These developments occurred alongside strong backing from US President Donald Trump, who suggested that further aid was dependent on the success of Argentina's right-wing leader, Javier Milei, in the upcoming midterm elections. Milei, who has implemented sweeping budget cuts to combat inflation, previously enjoyed high praise from Trump, who called him his 'favourite president.' Bessent, however, appeared to temper Trump's election-contingent remarks by stating that US support is 'policy-specific,' meaning it will continue as long as the Milei government pursues 'good policies,' such as deregulation and tax cuts, irrespective of the election results. This ongoing US financial backing, which aligns with the IMF's support, gives Milei confidence to maintain his libertarian agenda until at least 2027.
