The Donald Trump administration’s US$20-billion lifeline for Argentina leans on a Treasury fund that’s been successfully used to bail out troubled allies in the past – but it could still carry risks for US taxpayers.
Treasury Secretary Scott Bessent floated the idea of a rescue package this week, saying he’s prepared to deploy the agency’s Exchange Stabilization Fund to help Argentina. Bessent said the United States could offer swap lines and purchases of currency or government bonds, among other options.
The plan’s goal is clear: to help President Javier Milei weather a market slump and win mid-term elections next month. Trump’s team sees Milei as a political ally, and his drive to slash chronic budget deficits as Argentina’s best bet to pull itself out of a decades-old crisis cycle.
As for the details, little has been d
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