US treasury secretary says Argentina has repaid its US credit line in a win for Milei
BUENOS AIRES, Argentina — Argentina has successfully repaid the $20 billion credit line it received from the Trump administration, announced U.S. Treasury Secretary Scott Bessent on Friday. This repayment is a significant milestone for Argentine President Javier Milei in restoring confidence in the country’s economy.
Apart from honoring commitments to bondholders, Milei’s administration, known for its radical libertarian approach, has promptly and fully repaid the borrowed funds,” Bessent stated without specifying the exact amount.
The latest Treasury report revealed that Argentina’s central bank exchanged pesos for $2.5 billion through the swap by the end of October.
Confirming Bessent’s announcement, the Argentine Central Bank acknowledged the repayment.
The controversial U.S. bailout provided crucial dollar liquidity to Argentina, a key ideological ally of the Trump administration, preventing a market collapse ahead of the country’s pivotal midterm elections last October.
Following Milei’s party’s significant victory in the elections, investor confidence in Argentina’s ability to manage its debts has increased. This optimism was further demonstrated when the government issued a dollar bond for the first time in eight years, signaling a potential return to international bond markets.
With the repayment from Argentina, the U.S. Exchange Stabilization Fund no longer holds any Argentine pesos, according to Bessent.
Bessent defended the bailout as a successful move that benefited both countries, emphasizing the importance of a stable Argentina in promoting prosperity in the Western Hemisphere.
Argentina’s economy minister expressed gratitude to the Trump administration for their support and trust in the country’s economic policies.
Despite this positive development, Argentina still faces challenges, including low foreign exchange reserves and upcoming repayments on IMF loans and private debts.
