Treasury Secretary Scott Bessent said on Tuesday that the U.S. has signed its $20 billion “economic stabilization” agreement with Argentina to prop up the South American nation’s crumbling economy.
“As we work to stabilize and secure the Western Hemisphere and Make America Safe Again, the @USTreasury has signed an economic stabilization agreement with the Central Bank of Argentina,” Bessent said in a statement on the social platform X.
Earlier this month, the Trump administration pledged to Argentina a $20 billion credit swap line as the U.S. seeks to stabilize Argentina’s turbulent financial markets, in a boost to Argentine President Javier Milei, President Trump’s right-wing populist ally.
Trump has previously said that the financing is dependent on whether Argentina’s upcoming elections turn out in favor of Milei’s party.
Bessent said last week the U.S. is also looking to provide an additional $20 billion to the Latin American ally, through a mix of financing from sovereign funds and private banks.
On Tuesday, Bessent praised Milei, saying he “has worked hard to reverse previous irresponsible economic policies, including overspending, fiscal irresponsibility, and reckless borrowing.”
“Argentina now has the opportunity to embrace economic freedom, and our stabilization agreement is a bridge to a better economic future for Argentina, not a bailout,” Bessent added.
The Trump administration has faced bipartisan pushback from members of Congress who have claimed that the billions of dollars in financing is a bailout and have advocated for the funds to be spent instead on struggling Americans.
But Bessent defended the move on Tuesday.
“We do not want another failed state in Latin America, and a strong, stable Argentina as a good neighbor is explicitly in the strategic interest of the United States,” Bessent said.
“President Trump is leading the way in the Western Hemisphere and our Administration supports President Milei’s current reform plans and prudent fiscal strategy to Make Argentina Great Again.”
