The Trump administration is advancing plans to provide Argentina with an additional $20 billion in financial support, supplementing the $20 billion credit swap line pledged earlier this month. This new package, designed to stabilize Argentina’s faltering currency, would involve a combination of private sector banks and sovereign funds. Treasury Secretary Scott Bessent described the initiative as a ‘private-sector solution,’ emphasizing the interest from multiple banks and sovereign funds. The move aims to bolster Argentina’s debt market and economic recovery. However, President Donald Trump has linked the aid to the political fortunes of Argentine President Javier Milei, warning that U.S. support could be withdrawn if Milei’s party loses the upcoming midterm elections on October 26. ‘If he loses, we are not going to be generous with Argentina,’ Trump stated during a White House meeting with Milei. The Argentine peso experienced a slight depreciation following Trump’s remarks, while shares of major Argentine companies saw a modest recovery after initial declines. Opposition leaders in Argentina criticized Trump’s comments, labeling them as political interference and extortion. Former President Cristina Fernández urged Argentines to consider the implications of U.S. involvement, while other opposition figures accused Trump of prioritizing Milei’s political survival over Argentina’s welfare.
US is working on doubling aid to Argentina to $40 billion by tapping private funding sources
