Overview
- Oxford Economics says the rescue will do little to restore support for President Javier Milei or reduce structural fragilities, projecting a $21.3–$31.4 billion external financing gap through late 2025 and 2026.
- The package centers on a roughly $20 billion U.S. Treasury swap line with a possible matching tranche from private financiers and a debt repurchase program, though timing and access remain uncertain.
- Paul Krugman argues the intervention likely aggravated the run and may let hedge funds exit, noting reports that repo rates jumped from 80% to 160% after the U.S. plan was unveiled.
- Financial Times commentator Martin Wolf warns Milei is near failure and deems a disinflation strategy anchored to the exchange rate improbable, criticizing Washington’s backing as politically driven.
- President Donald Trump publicly linked continued U.S. support to Milei’s electoral success, adding political risk days before Argentina’s legislative elections.