The Trump administration is seeking to secure a total of $40 billion in financial assistance for Argentina to help the country’s libertarian leader stabilize its turbulent financial markets.
Treasury Secretary Scott Bessent said on Wednesday that the U.S. is looking to provide an additional $20 billion to the Latin American ally, through a mix of financing from sovereign funds and private banks.
Last week, the U.S. finalized a $20 billion currency swap line with Argentina’s central bank to prop up the crumbling economy of Argentine President Javier Milei, a right-wing populist allied with President Trump.
“We are working on a $20 billion facility that would complement our swap line, with private banks and sovereign funds that, I believe, would be more focused on the debt market,” Bessent told reporters, calling it a “private-sector solution.”
“Many banks are interested in it and many sovereign funds have expressed interest,” Bessent added.
The Treasury’s announcement comes after Trump welcomed Milei for a meeting at the White House on Tuesday. The U.S. president said his administration’s economic assistance to Argentina is contingent on whether Milei’s party remains in power.
“If he loses, we are not going to be generous with Argentina,” Trump said Tuesday.
“If he does win, we’re going to be very helpful,” Trump added. “And if he doesn’t win, we’re not going to waste our time. Because you have somebody whose philosophy has no chance of making Argentina great again.”
Trump’s conditional support risks backfiring in Argentina, where many people saw the U.S. president’s comments as an attempt to meddle in its elections.
Milei, who has been a staunch Trump ally and attended January’s inauguration, is facing a critical midterm election later this month. While Milei is not up for reelection, it will be the first legislative elections since he took office in late 2023.
The Associated Press contributed reporting
