Buenos Aires Herald 
The U.S. Treasury announced on Wednesday it will grant a full-on bailout for Argentina, which includes the purchase of the country’s USD bonds, a stand-by credit line, and a US$20 billion swap with the Central Bank.
“The Trump Administration is resolute in our support for allies of the United States, and President Trump has given President Milei a rare endorsement of a foreign official, showing his confidence in his government’s economic plans and the geopolitical strategic importance of the relationship between the United States and Argentina,” Treasury Secretary Scott Bessent posted on X.
Bessent’s announcement comes a day after U.S. President Donald Trump met President Javier Milei during the United Nations General Assembly and declared his full-throated support for him in a videoed message. Trump declared that Milei had his “complete and total endorsement for re-election as president.” Asked by a voice off-screen whether the U.S. would “help bail out Argentina,” Trump said: “We’re going to help them, I don’t think they need a bailout. He’s done a fantastic job.”
In his post, Bessent explained that the U.S. Treasury is ready to purchase Argentina’s USD bonds “and will do so as conditions warrant.” He also wrote that the “significant” stand-by credit line will be granted through their Exchange Stabilization Fund, an emergency reserve fund used to help foreign governments and central banks stabilize their currencies.
Regarding the US$20 billion swap line, Bessent said the Treasury is working “in close coordination” with the Argentine government “to prevent excessive volatility.”
Bessent also announced that the U.S. would purchase secondary or primary government debt and is working with the Argentine government to “end the tax holiday for commodity producers converting foreign exchange.”
Read the latest on this: Scott Bessent: US ‘giving Argentina a swap line, not putting money in’
On Monday, Argentina announced that it was cutting agricultural export duties to zero until the end of October. The tax break seeks to incentivize exports, which are a crucial source of dollars for the country.
In his post, Bessent added that “substantial” direct investment in Argentina by U.S. companies could take place “in the event of a positive election outcome.” Mid-term national elections in Argentina are scheduled for October 26, almost two months after the ruling party suffered a major blow in the Buenos Aires province legislative elections, where La Libertad Avanza lost against the Peronist candidates by 14 points.
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‘A new era’
President Milei immediately thanked Bessent and Trump on X for their “firm support and trust in the Argentine people”.
“We deeply value our friendship with the United States Estados Unidos and your commitment to strengthen our partnership on the basis of shared values. Together we will forge a path of stability, prosperity and freedom. MAGA!,” he added.
Economy minister Luis Caputo also thanked Bessent on X, where he stated that a “new era is beginning” and echoed Trump’s MAGA motto. “Let’s work all together to make our country great again,” he wrote.
Shortly after the meeting on Tuesday, Caputo had announced that the World Bank would act to speed up the disbursement of US$4 billion dollars to Argentina over the coming months.
Argentine opposition questions US plan
Deputies from the Peronist Unión por la Patria party have demanded that the Milei administration seek congressional approval for any financing deals it makes with the U.S.
On Tuesday, after Trump’s endorsement of Milei but before Bessent’s announcement of the details, UxP deputies filed two draft resolutions. One called on the Executive Branch and Central Bank to send any agreements it reaches with the U.S. government or Treasury Department to both houses of congress for approval, providing “all documentation and clauses of the agreement, with particular attention to any commitment that Argentina assumes as a condition.”
That draft resolution also stated that any loan taken with the U.S Treasury should be considered null and void unless approved by both chambers.
The other draft resolution called on Economy Minister Luis Caputo to appear in the Chamber of Deputies to “give explanations about possible negotiations the government is carrying out in order to receive a buffer from the government of the United States of America.”
Deputy Germán Martínez, who leads the Peronist bloc in the lower house, questioned why the government hadn’t moved to accumulate international reserves sooner, asked whether Argentina would face conditions pertaining to the U.S. military or the nation’s natural resources, and raised the question of whether the U.S. Congress would be adequately informed about what the Trump administration was offering Argentina.
