Bessent pledges full support for Argentina

Investing.com -- U.S. Treasury Secretary Scott Bessent announced Wednesday that the United States stands ready to provide comprehensive financial support to Argentina following discussions with Argentine President Javier Milei and his team.

Bessent outlined multiple support mechanisms, including the Treasury’s readiness to purchase Argentina’s USD bonds in both primary and secondary markets "as conditions warrant." He also revealed that the U.S. is prepared to deliver significant stand-by credit through the Exchange Stabilization Fund.

The Treasury Secretary disclosed ongoing negotiations with Argentine officials for a $20 billion swap line with Argentina’s Central Bank. Bessent emphasized that the U.S. "will work to prevent excessive volatility" in Argentina’s financial markets.

According to Bessent, the Treasury is working with Argentina to end the tax holiday for commodity producers converting foreign exchange. He also mentioned having spoken with numerous U.S. companies that intend to make "substantial foreign direct investment" in the South American nation.

Bessent noted that President Trump "has confidence in its economic plans" and added that the U.S. will work on Argentina’s principal repayments after the election.

"U.S. Treasury remains fully prepared to do what is necessary" to support Argentina, Bessent stated, underscoring the administration’s commitment to the country’s economic stability.

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