Overview
- Treasury Secretary Scott Bessent said the administration is working on a $20 billion private-sector facility for Argentina’s debt market, with banks and sovereign wealth funds expressing interest.
- The effort would sit alongside a completed $20 billion currency swap with Argentina’s central bank, and the U.S. has directly purchased pesos to help steady the currency in a rare intervention.
- Major banks including JPMorgan, Bank of America, Goldman Sachs, and Citigroup are in talks on the facility, with specific collateral and terms still under discussion, according to Reuters.
- President Trump publicly tied ongoing U.S. support to Argentina’s Oct. 26 midterms, while Bessent later emphasized assistance would depend on “good policies” rather than the election outcome.
- Markets whipsawed on the comments and announcements, with the peso slipping about 0.7% and Argentine stocks dropping before rebounding, as political and ethical criticism intensified in both countries.