"Any doubts about the extent of the support the United States has decided to provide Argentina were dispelled Wednesday. Treasury Secretary Scott Bessent announced before the markets opened that the White House is negotiating with the government of Javier Milei over a $20 billion currency swap to strengthen the Central Bank's reserves, the purchase of Argentine debt bonds, and a significant stand-by credit via the Exchange Stabilization Fund, the amount of which was not specified."
"Argentina has the tools to defeat speculators, including those who seek to destabilize Argentina's markets for political objectives, Bessent wrote on social media, implying that Washington could react if the attacks suffered by the South American country's peso and bonds last week are repeated. The Treasury announcement comes a day after Trump and Milei met on the sidelines of the UN General Assembly in New York."
"Before the meeting, Trump had said the Argentine was a truly fantastic and powerful leader for the great people of Argentina, who has advanced at all levels at record speed. Trump had also offered Milei his complete and total endorsement for reelection as president, despite the fact that the general election is still more than two years away. Milei's time is rather short: on October 26, there are national legislative elections, and a defeat could be devastating for market confidence in his austerity model."
The United States is negotiating financial support for Argentina that includes a $20 billion currency swap, purchases of Argentine debt, and a stand-by credit via the Exchange Stabilization Fund to bolster central bank reserves. Washington signaled willingness to counter market attacks and to respond if speculators target the peso and bonds again. The announcement followed a meeting between Donald Trump and Javier Milei at the UN General Assembly, where Trump offered full endorsement for Milei's reelection. Upcoming national legislative elections on October 26 present a near-term risk to market confidence that could undermine Milei's austerity agenda.
Read at english.elpais.com
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