US Treasury's Scott Bessent Unveils $20B Facility to Boost Argentina's Economy Amid Milei Support:

In a significant move to stabilize Argentina’s struggling economy, U.S. Treasury chief Scott Bessent announced on Wednesday the creation of a new $20 billion facility backed by private banks and sovereign wealth funds. The initiative is designed to support the country's debt markets and comes in addition to an already-established $20 billion U.S. currency swap arrangement aimed at propping up the Argentine peso. “We are working on a $20 billion facility that would be adjacent to our swap line… more aimed at the debt market,” Bessent told reporters during the annual IMF and World Bank meetings in Washington, DC. This brings the total financial assistance for Argentina to a massive $40 billion, signaling robust U.S. support for President Javier Milei’s government, which is battling both economic turmoil and intense political resistance ahead of crucial midterm elections. Milei’s Economic Reforms and U.S. Backing President Javier Milei, who took office in late 2023, has implemented sweeping austerity measures in a bid to tame soaring inflation and stabilize the Argentine economy. These reforms have sparked both praise and protest, with large segments of the population voicing anger over public spending cuts. Despite the unrest, Milei has found a strong ally in former U.S. President Donald Trump. The two leaders have maintained close ties, and Trump has openly praised Milei, even calling him his “favourite president” in 2024. On Tuesday, Milei visited the White House, where Trump reaffirmed his support. However, Trump made headlines with remarks suggesting that U.S. economic aid could be conditional on Milei’s political success. “If he does win, we’re going to be very helpful,” Trump said. “If he doesn’t win, we’re not going to waste our time.” Bessent Clarifies U.S. Position In contrast to Trump’s statements, Scott Bessent clarified that U.S. financial support is not dependent on election outcomes, but rather on Argentina’s continued commitment to sound economic policies. “It is not election-specific. It is policy-specific,” Bessent stated. “As long as Argentina continues enacting good policy, they will have U.S. support.” Bessent emphasized that the new private-sector-led $20 billion facility has been weeks in the making and reflects a broader commitment to Argentina’s long-term stability, not just a short-term political boost. Milei Confident of Continued Support Speaking in a broadcast interview, President Milei expressed confidence that U.S. backing would continue as long as his government remains in power and focused on libertarian reforms. “We continue to advance the ideas of freedom,” Milei said. “So at least until 2027 we have that support assured.” He also reiterated his agenda of deregulation, lower taxes, and market-driven growth. With the midterm elections looming, the future of Argentina’s economic recovery could hinge on the outcome — but for now, the message from Washington is clear: sound policy will continue to unlock powerful financial backing from the United States.

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