Any doubts about the extent of the support the United States has decided to provide Argentina were dispelled Wednesday. Treasury Secretary Scott Bessent announced before the markets opened that the White House is negotiating with the government of Javier Milei over a $20 billion currency swap to strengthen the Central Bank’s reserves, the purchase of Argentine debt bonds, and a “significant stand-by credit via the Exchange Stabilization Fund,” the amount of which was not specified. “Argentina has the tools to defeat speculators, including those who seek to destabilize Argentina’s markets for political objectives,” Bessent wrote on social media, implying that Washington could react if the attacks suffered by the South American country’s peso and bonds last week are repeated.

The Treasury announcement comes a day after Trump and Milei met on the sidelines of the UN General Assembly in New York. Before the meeting, Trump had said the Argentine was “a truly fantastic and powerful leader for the great people of Argentina,” who has advanced “at all levels at record speed.” Trump had also offered Milei his “complete and total endorsement for reelection as president,” despite the fact that the general election is still more than two years away.

Milei’s time is rather short: on October 26, there are national legislative elections, and a defeat could be devastating for market confidence in his austerity model. The president has been clear about what could happen since September 7, when Peronism swept local elections in the province of Buenos Aires and the Argentine peso and bonds came under fire. The attacks only ceased last Monday, when the United States made it clear that it was willing to do “whatever it takes” to support Milei.

Bessent has now given indications about the aid Washington is willing to provide. The $20 billion swap is the most concrete. From that sum, the $5 billion from the Buenos Aires-China line will have to be deducted. Argentina’s cancellation of this swap is a priority for Washington, which since Trump’s return to the White House has embarked on a campaign to limit Beijing’s regional influence. Aid to Milei is part of that much broader strategy.

The purchase of Argentine debt bonds in dollars is another pillar of the bailout, although Bessent clarified that negotiations will begin after the October 26 elections. It is unclear how a defeat or victory for Milei will affect the talks. If Peronism wins again, Argentina faces months of great economic instability.

Argentina’s Economy Minister Luis Caputo was the first senior official to react to Bessent’s message. “What more can I add than thank you, Secretary Scott Bessent. Argentines, a new era is beginning. Let’s all work together to make our country great again!” he wrote on social media. Minutes later, Milei thanked Trump for the gesture with unusual restraint. “Thank you, President @realDonaldTrump and Mr. Secretary @scottbessent for your strong support and confidence in the Argentine people,” he wrote. To close, he replaced his customary “Long live freedom, damn it!” with “MAGA!”

The first evidence that the markets had received Bessent’s announcement enthusiastically was the collapse of Argentina’s country risk, that is, the spread it pays on its debt over the interest on U.S. debt. The index, compiled by JP Morgan, fell from just over 1,000 points at Tuesday’s close to 839 points at the opening, a drop of almost 18%. It’s still far from the 500 points of a year ago, but it represents a notable improvement over the 1,500 points it reached last Friday, amid a speculative attack on the Argentine peso and bonds.

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