The United States is working to double aid to Argentina to $40 billion by turning to private financing sources
WASHINGTON (AP) — The Trump administration is seeking to provide an additional $20 billion in financing for Argentina through a combination of sovereign wealth fund and private sector financing.
This would be in addition to the $20 billion credit swap line that the U.S. Treasury promised this month to Argentine President Javier Milei and his government to shore up the South American nation’s collapsing currency.
“We are working on a $20 billion credit line that would complement our swap line, with private banks and sovereign wealth funds that I think would be more focused on the debt market,” Treasury Secretary Scott Bessent told reporters on Wednesday. He called it “a private sector solution” and said that “many banks are interested in it and many sovereign wealth funds have expressed interest.”
In a White House meeting Tuesday with Milei, Republican President Donald Trump said his administration wanted to help “our neighbors” with the relief package, but also suggested the money could be withdrawn if Milei’s party did not prevail in the Oct. 26 midterm elections.
“If they lose, we’re not going to be generous to Argentina,” Trump said.
AP Photo/Alex Brandon
The Argentine peso weakened slightly on Wednesday after Trump’s comments. The peso depreciated around 0.7%, and the dollar (the currency Argentines depend on to save) was trading at 1,395 pesos, compared to 1,385 pesos the previous day.
On Wall Street, shares of major Argentine companies rose slightly after falling as much as 8.1% on Tuesday following Trump’s comments.
In Argentina, criticism from the opposition was immediate.
Former president Cristina Fernández, who is under house arrest after a conviction for corruption, wrote on social media: “Trump to Milei in the United States: ‘Our agreements depend on who wins the elections’. Argentines… you already know what to do!”
Martín Lousteau, president of the centrist Radical Civic Union, said that “Trump doesn’t want to help a country; he just wants to save Milei” and that “nothing good can come of this.”
Maximiliano Ferraro, head of the opposition Civic Coalition, called Trump’s comments “a flagrant act of extortion against the Argentine Nation.”
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Vulcano reported from Buenos Aires, Argentina.