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1h ago

U.S. Signals Mandate-Bound Support for Argentina as Trump, Milei Set New York Meeting

Markets rallied after officials outlined swap lines, direct peso buying, ESF debt purchases to confront dwindling reserves, looming 2026 repayments.

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Germán Martínez (UP), junto a Martín Tetaz y Rodrigo de Loredo (UCR), Maximiliano Ferraro y Juan Manuel López (CC)
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Overview

  • Treasury Secretary Scott Bessent said Washington is prepared to do what is necessary within its mandate to back Argentina’s stabilization effort.
  • Bessent, President Donald Trump, and President Javier Milei are scheduled to meet Tuesday in New York to define next steps on financial and commercial cooperation.
  • Options under discussion include Federal Reserve swap lines, U.S. dollar purchases of pesos, and U.S. Exchange Stabilization Fund purchases of dollar‑denominated Argentine debt.
  • Argentine sovereign bonds jumped as much as 11% after the announcement, reflecting hopes for external support.
  • Argentina’s central bank sold about USD 1.1 billion in recent sessions as reserves fell, with risk premium near 1,500 basis points, yields topping 25%, and Milei negotiating a U.S. Treasury loan to cover roughly USD 8.5–9.0 billion in 2026 maturities.