The Trump administration is working on an additional $20 billion support package for Argentina. If completed, it would bring the total price tag of a U.S. backstop plan for Buenos Aires to $40 billion. <\/p>\n
\u201cIt is a private-sector solution to Argentina\u2019s coming debt payments,\u201d Treasury Secretary Scott Bessent said of the latest round of funding Wednesday. <\/p>\n
Bessent said the United States would arrange funding commitments from banks and sovereign wealth funds to cover the second $20 billion tranche. <\/p>\n
The comment was most likely designed to allay growing fears that U.S. taxpayers will supply the funds for the administration\u2019s extraordinary financial rescue plan for Argentina. <\/p>\n
Argentine President Javier Milei \u2014 a close ally of President Donald Trump \u2014 is struggling to maintain public support for his massive budget cuts and austerity programs.<\/p>\n
The prospect that Milei\u2019s reforms could stall has spooked international investors, some of whom have responded by selling their holdings in Argentine pesos. <\/p>\n
Faced with a currency sell-off, the Trump administration recently began purchasing pesos to stabilize their value<\/a>.<\/p>\n The intervention most likely helped stem some of the losses, and Bessent confirmed Wednesday that purchases are still underway.<\/p>\n But experts say even tens of billions of U.S. dollars would still fail to fix systemic issues that have weakened Argentina\u2019s economy for decades.<\/p>\n Since 2000, Buenos Aires has defaulted on its sovereign debt obligations three times. <\/p>\n \u201cThe current strategy is extremely fragile,\u201d said Barry Eichengreen, a professor of economics and political science at the University of California, Berkeley, <\/p>\n \u201cEven if [Argentines] manage to skate through thin ice this time, there are always more bumps in the road,\u201d he said.<\/p>\n Many of the details of the Trump administration\u2019s financing package are still fuzzy. <\/p>\n The initial $20 billion<\/a> was effectively structured as a loan, but it\u2019s not clear what conditions \u2014 if any \u2014 the U.S. Treasury put on the funds.<\/p>\n As Trump\u2019s Argentine rescue plan expanded this week, top officials came under pressure to justify funding another country\u2019s currency while the U.S. government lacks the funding to reopen and key sectors of the American economy are struggling.<\/p>\n \u201cTrump is DOUBLING his bailout for Argentina. Meanwhile your health care premiums are about to DOUBLE,\u201d Sen. Ruben Gallego, D-Ariz., said on X<\/a>. \u201c$40 BILLION to help Trump\u2019s elite friends. $0 to lower costs for American families.\u201d<\/p>\n American soybean farmers are particularly furious about Trump\u2019s Argentina rescue plan<\/a>.<\/p>\n After Buenos Aires received its first round of U.S. financial support, it suspended its export taxes on soybeans, prompting China to quickly purchase millions of tons of its soybeans at a discount. <\/p>\n Meanwhile, Beijing has effectively placed an embargo on soybean purchases from U.S. farmers.<\/p>\n \u201cThis is such a slap in the face to America\u2019s family farmers who are hurting like crazy right now because of Trump\u2019s trade war,\u201d Rep. Angie Craig, D-Minn., the ranking member on the House Agriculture Committee, said in a video on X<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":" The Trump administration is working on an additional $20 billion support package for Argentina. If completed, it would bring the total price tag of a U.S. backstop plan for Buenos Aires to $40 billion. \u201cIt is a private-sector solution to Argentina\u2019s coming debt payments,\u201d Treasury Secretary Scott Bessent said of the latest round of funding <\/p>\n","protected":false},"author":0,"featured_media":3958,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-3957","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"_links":{"self":[{"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/posts\/3957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/comments?post=3957"}],"version-history":[{"count":0,"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/posts\/3957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/media\/3958"}],"wp:attachment":[{"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/media?parent=3957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/categories?post=3957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketsfortress.com\/index.php\/wp-json\/wp\/v2\/tags?post=3957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}