Overview

• The U.S. Treasury said it is in advanced talks on a roughly $20 billion temporary swap/financing line with Argentina’s central bank and is prepared to buy Argentine dollar bonds and extend credit via the Exchange Stabilization Fund.
• Kristalina Georgieva met President Javier Milei in New York, endorsed the support for Argentina’s program, and emphasized fiscal discipline, firm monetary policy, and structural reforms, with teams set to continue technical discussions.
• Markets rallied on the announcements as Argentine equities in New York rose up to 7%, dollar bonds gained around 6%, and the country risk fell by more than 100 points to about 917.
• Major operational questions remain unresolved, including potential Federal Reserve involvement for a true swap facility, any Argentine congressional approvals required for specific instruments, and undisclosed terms and limits of the package.
• U.S. backing is tied to policy conditions aligned with the IMF program, including ending export-tax exemptions for commodity exporters, with further reform momentum expected after the legislative elections.