The U.S. is working on a multibillion-dollar rescue plan for Argentina funded by the private sector, Treasury Secretary Scott Bessent told a group of reporters on Wednesday.
Why it matters: Bessent said the $20 billion facility — aimed at shoring up Argentina’s debt market — would work alongside the Trump administration’s measures announced last week.
It would bring support for Argentina from, or arranged by, the U.S. to roughly $40 billion.
“As long as Argentina continues enacting good policy, they will have U.S. support,” he said.
The Argentina rescue plan raised an uproar among U.S. farmers when Argentina slashed its export taxes on soybeans.
The U. S. is developing a private sector-funded rescue plan for Argentina worth billions of dollars, Treasury Secretary Scott Bessent informed reporters on Wednesday.
The $20 billion facility, which is intended to strengthen Argentina’s debt market, will complement the Trump administration’s actions that were announced last week, according to Bessent.
It would bring about U.S. support for Argentina. A. To about $40 billion.
What they’re saying: Bessent told a roundtable of reporters at the Treasury Department, “We’ve actually been working on it for weeks.”.
Bessent continued, “It is a private sector solution to Argentina’s upcoming debt payments.”.
Bessent stated, “Many sovereign funds have expressed interest in it, and many banks are interested in it.”.
Zoom in: The plan’s announcement follows Bessent’s announcement last week that Treasury and Argentina’s central bank had reached an agreement on a $20 billion currency swap framework.
As stated by Bessent on Wednesday, the U. S. bought more pesos from Argentina this morning.
After President Javier Milei’s party lost important local elections last month, investors began to question his economic agenda, which caused the peso to decline.
After President Trump seemed to tie the U.S. dollar, the peso lost more value overnight. S. . help determine whether Milei remains in power after the elections.
Support was “policy specific,” not election specific, Bessent clarified on Wednesday.
Argentina will continue to have the United States as long as they implement sound policies. S. assistance,” he stated.
The big picture: Officials in the Trump administration believe that their backing of Argentina is a component of a broader strategy to increase American influence in Latin America.
Bessent expressed his belief that previous administrations had “squandered a prominent opportunity” to include Latin American nations in “the U.S.”. S. influence zone. “.”.
“Argentina is the beacon and essential to this work,” Bessent stated.
“Using the weight of U is far superior. S. “We have more economic power than military power,” Bessent continued, citing recent attacks on allegedly drug-carrying vessels by the Trump administration.
Indeed, but: There may be a decline in domestic interest in such endeavors.
The plan to save Argentina caused a stir among U.S. S. . farmers when Argentina cut soybean export taxes.
China was able to purchase soybeans from the South American country in quantities that they would have otherwise bought from the United States thanks to this move. S.
What to watch: The timing of the private-sector plan and additional information about the participants will be of interest to the markets.
