U.S. Readies $20B Lifeline for Argentina as Trump Backs Milei
Treasury Secretary Scott Bessent said the U.S. is in talks to establish a $20 billion swap line with Argentina and signaled readiness to use the Treasury’s Exchange Stabilization Fund and buy Argentine dollar‑denominated bonds to contain financial upheaval and support President Javier Milei’s reforms. The move — framed as political backing ahead of critical Argentine legislative contests — has prompted domestic pushback from farm groups worried about competitive harm after Argentina’s peso interventions and export‑tax cuts, and a formal rebuke from Senator Elizabeth Warren over using emergency U.S. funds for foreign market intervention.
Finance
Politics
International
Economy
📰 Sources (2)
Trump Wades Into Bailout Politics in Offering a Lifeline to Argentina
New information:
- Direct on‑the‑record quote and context from Treasury Secretary Scott Bessent, including an illustrative aside that he said New York City would be rebuffed with 'Drop dead' if it sought a federal bailout while the administration is prepared to aid Argentina.
- Explicit political framing that the support is intended to buttress Javier Milei after recent local electoral losses and ahead of critical legislative elections.
- Documented domestic reactions: complaint from the American Soybean Association (quote from president Caleb Ragland) about competitive harm to U.S. farmers and a formal rebuke from Senator Elizabeth Warren (letter to Scott Bessent) criticizing the use of U.S. emergency funds for a foreign currency/market intervention.
- Reporting that Argentina recently spent more than $1 billion from its central bank to shore up the peso and that Argentina lowered export taxes to boost soybean sales to China—policy moves affecting U.S. agricultural exports.
Bessent Says U.S. Talking With Argentina About $20 Billion in Aid
New information:
- Treasury Secretary Scott Bessent publicly announced talks to establish a $20 billion swap line with Argentina.
- The administration signaled readiness to use the Treasury’s Exchange Stabilization Fund and to purchase Argentine dollar‑denominated bonds.
- Bessent posted the statement on X on Wednesday, describing the measures as aimed at containing financial upheaval and supporting President Javier Milei’s reforms.