U.S. Treasury Secretary Scott Bessent said on Thursday (October 9) that the Trump administration has moved forward with its aid plan for Argentina, directly purchasing pesos and finalizing the framework for a $20 billion currency swap line.
Terms and conditions of the economic support package have not yet been announced, but Bessent said the funds will be provided in the form of currency swaps with Argentina's central bank. Large global investors have been anxiously awaiting details of the bailout, which critics say will benefit wealthy fund managers at a time when American farmers are struggling and the U.S. government is in shutdown.
Officials from both countries have raced against time over the past four days to finalize the terms of the bailout ahead of crucial parliamentary elections in Argentina later this month and a visit to Washington next week by Argentine President Javier Milei, a liberal leader and close ally of U.S. President Donald Trump.
"Argentina is facing severe liquidity shortages," Bessent wrote on the social media platform X. "The U.S. Treasury is prepared to immediately take any necessary extraordinary measures to provide stability to the markets." He insisted that the credit swap with Argentina was not a bailout.
The Treasury secretary added that U.S. business leaders told him they wanted to deepen ties with Argentina and that the Trump administration would support the Latin American ally.
But the Trump administration's decision to rescue Argentina's economy has raised concerns about whether its true purpose is to help wealthy investors who may suffer losses from Argentina's economic downturn.
Argentine President Milei posted on social media, thanking Bessent for his "strong support" and Trump for his "strong leadership."
"As the closest allies, we will work together to create an economically free and prosperous hemisphere," he said.
Following the announcement on Thursday (October 9), a group of Democratic senators introduced the "No Argentina Bailout Act," which would block the U.S. Treasury from using its Exchange Stabilization Fund to aid Argentina.
"It is inexplicable that President Trump would support a foreign government while shutting down our own," said Senator Elizabeth Warren (D-Massachusetts) in a statement. "Trump promised 'America First,' but he put himself and his billionaire friends first, leaving Americans to foot the bill."
The U.S. financial aid provided Mire a crucial reprieve. On Thursday (October 9), after Bessent confirmed the credit line, Argentina's dollar-denominated bonds rose about 10%, and the Buenos Aires stock market surged 15%.
Argentine Economy Minister Luis Andres Caputo expressed his "deepest gratitude" to Bessent after the announcement.
"Your unwavering commitment is extraordinary," he wrote.
Bessent did not mention any economic conditions associated with Argentina's swap line, leading many observers to criticize the intervention as a pre-election reward for a loyal friend rather than an investment in a strategic partner.
