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2h ago

U.S. Treasury Confirms Talks on $20 Billion Swap and Bond Purchases to Backstop Argentina

Negotiations signal a market backstop pending defined triggers, conditions, timing.

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El presidente Javier Milei con el posteo impreso cargado de elogios que le dio Trump. Foto: Reuters.

Overview

  • Treasury Secretary Scott Bessent said talks are underway for a $20 billion currency swap with Argentina’s central bank to reinforce reserves.
  • He said the U.S. is prepared to buy Argentine dollar bonds in primary or secondary markets, with a standby loan via the Exchange Stabilization Fund under consideration.
  • The World Bank announced it will accelerate $4 billion in support in the coming months as part of a larger $12 billion program.
  • U.S. statements and President Trump’s backing eased financial strains in Argentina, with lower risk premiums and a weaker dollar without central bank intervention.
  • Officials indicated that a swap and bond purchases could be activated without congressional approval, while an ESF loan would likely require legislation and could depend on policy changes and the October 26 elections.