United States Treasury Secretary Scott Bessent said the U.S. would offer Argentina a credit line if a global shock were to put the country’s economic recovery at risk, sources told Bloomberg news agency.

Bessent said that the U.S. administration would be willing to use the Exchange Stabilization Fund to support President Javier Milei’s government in the event of problems that were beyond Argentina’s control, as long as the Libertarian administration sticks to its economic policies.

He made the comments at a private JPMorgan event on Tuesday afternoon, three sources with knowledge of his comments told Bloomberg. 

The credit line would use the Exchange Stabilization Fund, which the United States formed in the 1930s. It is a U.S. emergency reserve fund which is often used to help foreign governments and central banks to stabilize their currencies. 

Argentine shares and bonds in dollars had rebounded on Tuesday, with shares on the S&P Merval up by up to 10% at press time.

Bessent’s comments arrive at a turbulent time for world markets, as U.S. President Donald Trump threatened to remove Federal Reserve head Jerome Powell. It is unclear whether the president has the authority to remove him.