BUENOS AIRES, Argentina — In a significant financial milestone, Argentina has fully settled its obligations from a controversial $20 billion credit facility extended by the Trump administration, U.S. Treasury Secretary Scott Bessent confirmed on Friday. This repayment marks a critical achievement for President Javier Milei’s radical libertarian government as it works to stabilize the nation’s perpetually troubled economy.
While Bessent did not disclose the exact repayment amount, Treasury Department records indicate Argentina’s central bank had utilized approximately $2.5 billion from the swap arrangement by October’s end. The Argentine Central Bank subsequently verified the complete settlement.
The original financial rescue package, deemed contentious by many analysts, provided essential dollar liquidity to the Trump administration’s politically aligned but financially strained partner. This intervention effectively arrested a severe market collapse in Argentina just before pivotal midterm elections last October, where Milei’s party secured a substantial victory that bolstered support for his stringent austerity measures.
The successful debt repayment has generated renewed investor confidence in Argentina’s economic direction. In a telling development, the government recently issued its first dollar-denominated bond in eight years, signaling a potential return to international capital markets.
Treasury Secretary Bessent hailed the repayment as vindication for the bailout decision, which had faced criticism for potentially contradicting Trump’s ‘America First’ doctrine and exposing U.S. taxpayer funds to risk. “Stabilizing a strong American ally while generating substantial profits for Americans represents an America First success story,” Bessent stated. “A stable Argentina that contributes to Western Hemisphere prosperity clearly serves our national interest.”
Argentine Economy Minister Luis Caputo expressed gratitude for the Trump administration’s “trust in our economic policy,” noting the importance of “building this geopolitical alliance with the world’s most significant nation.”
Despite this progress, Argentina’s economic challenges persist. Foreign exchange reserves remain dangerously depleted, and the nation faces mounting pressure from impending repayments on previous International Monetary Fund loans and additional private debt obligations in the coming months.