U.S. Treasury Endorses Argentina's Economic Stability under Milei

The Trump administration is prepared to assist Argentina with a credit line to secure its economic progress. Treasury Secretary Scott Bessent suggested support using the Exchange Stabilization Fund if Argentina faces external economic shock, as the nation navigates through its financial crisis under President Javier Milei's leadership.

The Trump administration has signaled its readiness to support Argentina with a credit line should the nation face an unforeseen economic disturbance, according to a statement by Treasury Secretary Scott Bessent obtained by Reuters. His remarks were delivered during a confidential meeting in Washington, reported by Bloomberg through insider sources.

Bessent, who visited Buenos Aires, noted the U.S. would tap into the Exchange Stabilization Fund to assist Argentina if an unexpected event threatened its economy. Under President Javier Milei's administration, the country, a key player in grain production and holder of valuable lithium reserves, attempts to recover from one of its gravest financial crises. Milei's austere measures, backed by a substantial IMF loan, are working toward stabilizing the inflation-plagued economy.

Despite showing improvements, Argentina's economy remains fragile, with drained foreign reserves. Bessent, contrasting past economic missteps like those during Mauricio Macri's presidency, expressed confidence in Milei's steadfastness, emphasizing Treasury's willingness to intervene if external shocks occur, ensuring the stability of Argentina's economy continues.

(With inputs from agencies.)