Argentina has repaid from$20 billion credit lineWith the Trump administration and the U.S. Treasury SecretaryScott BessantThe announcement on Friday was a key step for Argentina’s presidentJavier Mileyto restore confidence in the long-troubled economy.
Bessant said that in addition to payments to bondholders, Milley’s radical liberal government had “quickly and fully repaid limited drawdowns” without specifying the amount.
The latest report from the Treasury Department on the status of the credit line said that as of the end of October, Argentina’s central bank had traded $2.5 billion in pesos through swaps.
Argentina’s central bank confirmed Becente’s statement.
The U.S. rescue operation was controversial and largely unprecedented, providing the Trump administration with dollar liquidity.Cash-strapped ideological alliesand stoppedmarket routLast October, ahead of Argentina’s crucial midterm elections.
Milley’s Liberal Partyachieve great victoryConsolidating support for him at the pollsdraconian austerity planand allay investor concerns about the crisis-stricken country’s ability to repay its debt. In another sign of Milley’s renewed optimism about reform, his government issueddollar bondsLast month, for the first time in eight years, heralded the return of international bond markets.
Bessent said the U.S. Exchange Stabilization Fund used for the bailout no longer holds Argentine pesos because of Argentina’s deposits.
He hailed the payment as a milestone that justified the moveTreasury bailout for Argentinawhich raises doubts about the consistency ofTrump’s “America First” foreign policyand sparked a backlash in the U.S. for putting taxpayer funds at risk. Experts also criticized the opacity and apparent unconditionality of the loans.
“Stabilizing a strong U.S. ally and generating tens of millions of dollars in profits for Americans is an America-first home run deal,” Bessant wrote. “It is clearly in our best interest to set a course for Latin America where a strong and stable Argentina helps stabilize prosperity in the Western Hemisphere.”
Argentine Economy Minister Luis Caputo thanked the Trump administration for its “confidence in our economic policies.”
“It’s a fantastic reality for our country to be able to build this geopolitical alliance and know that we have the unequivocal support of the most important country in the world,” he said.
But Argentina is not out of the woods.
Its foreign exchange reserves remain dangerously low. The country will face further pressure in the coming months to repay its previous debt.International Monetary Fund loanand other private debts.
This story was originally published on wealth network