U.S. working on $20 billion private facility for Argentina, Bessent says
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Treasury Secretary Scott Bessent at a press conference on Wednesday at the Treasury Department. Photo: Breandan Smialowski/AFP via Getty Images
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.
What they're saying: "We've actually been working on it for weeks," Bessent told a roundtable of reporters at the Treasury Department.
- "It is a private sector solution to Argentina's upcoming debt payments," Bessent added.
- "Many banks are interested in it and many sovereign funds have expressed interest in it," Bessent said.
Zoom in: News of the plan comes after Bessent announced last week that Treasury had agreed on a $20 billion currency swap framework with Argentina's central bank.
- Bessent said on Wednesday that the U.S. had bought more Argentine pesos this morning.
- The peso took a hit last month after President Javier Milei's party lost key local elections, raising doubts among investors about his economic program.
Between the lines: The peso suffered further losses overnight after President Trump appeared to tie U.S. aid to whether the outcome of the elections keeps Milei in power.
- Bessent on Wednesday clarified that support was "policy specific," not election specific.
- "As long as Argentina continues enacting good policy, they will have U.S. support," he said.
The big picture: Trump administration officials see their support of Argentina as part of a larger plan to exert American power in Latin America.
- Bessent said that he believed other administrations had "squandered a prominent opportunity" to bring Latin American countries into "the U.S. sphere of influence."
- "Argentina is the beacon and essential to this work," Bessent said.
- "It's much better to use the heft of U.S. economic power than have to use military power," Bessent added, pointing to the Trump administration's recent strikes on vessels allegedly carrying drugs.
Yes, but: The domestic appetite for such ventures might sour.
- The Argentina rescue plan raised an uproar among U.S. farmers when Argentina slashed its export taxes on soybeans.
- The move that allowed China to buy the South American nation's soybeans in volumes that they would usually purchase from the U.S.
What to watch: Markets will be looking for the timing of the private-sector plan, and further details on the participants.
