"Argentina has repaid the funds it drew from a $20 billion credit line with the Trump administration, U.S. Treasury Secretary Scott Bessent announced Friday, in a crucial step for Argentine President Javier Milei to restore confidence in his chronically distressed economy. In addition to making payments to bondholders, Milei's radical libertarian administration had "quickly and fully repaid its limited draw," Bessent said, without specifying the amount."
"Thanks to Argentina's deposit, Bessent said, the U.S. Exchange Stabilization Fund tapped for the bailout holds no more Argentine pesos. He praised the payment as a landmark that justified the Treasury's bailout of Argentina, which raised doubts about the consistency of Trump's "America First" foreign policy and drew backlash in the U.S. for putting taxpayer funds at risk. Experts have also criticized the opaque and apparently unconditional nature of the loan."
"The Treasury's latest report on the status of the credit line said that Argentina's central bank had traded pesos for $2.5 billion through the swap as of the end of October. The Argentine Central Bank confirmed Bessent's announcement. The contentious and largely unprecedented U.S. rescue provided dollar liquidity to the Trump administration's cash-strapped ideological ally and halted a market rout in Argentina ahead of crucial midterm elections last October."
Argentina repaid funds drawn from a $20 billion U.S. credit line. The amount repaid was not specified. Argentina's central bank exchanged pesos for $2.5 billion through the swap by the end of October. The U.S. Exchange Stabilization Fund tapped for the bailout holds no more Argentine pesos after Argentina's deposit. The U.S. rescue supplied dollar liquidity, halted a market rout ahead of crucial midterm elections, and supported President Javier Milei's austere reforms. Milei's government issued a dollar bond for the first time in eight years. Experts criticized the bailout as opaque, apparently unconditional, and risky for U.S. taxpayers.
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