Milei: Argentina will Receive a Loan from the U.S. Treasury
Treasury Secretary Scott Bessent visited Argentina and praised the President’s “bold economic reforms.”
Quick overview
- President Javier Milei confirmed that Argentina is negotiating a loan with the U.S. Treasury to address upcoming debt maturities in 2026.
- Milei stated that the government is working hard on strategies to cover $4 billion due in January and $4.5 billion in July.
- Economy Minister Luis Caputo reassured bondholders that the government is committed to avoiding default and securing financing for upcoming payments.
- Preparations are underway for a potential meeting between Milei and Donald Trump, highlighting U.S. support for Argentina's economic reforms.
President Javier Milei confirmed on Friday that Argentina is negotiating a loan with the U.S. Treasury to help cover upcoming debt maturities in 2026. “We are working very hard, we are very advanced,” he said.
In an interview, Milei was asked whether an injection of funds from the United States was expected. He replied: “We knew this year would be very complicated and had already begun developing strategies to cover Argentina’s payments next year—$4 billion in January and $4.5 billion in July. We’ve been working on it; these negotiations take time, and until it’s confirmed we won’t make announcements. But yes, we are working hard, we are very advanced, and it’s a matter of time.”
Default Fears Kicking In Again
On Thursday night, Economy Minister Luis Caputo sought to reassure bondholders by ruling out the possibility of default. Speaking on the Las Tres Anclas de Carajo livestream, he said the government is working to secure financing for both January and July maturities. “We will ensure not only the January payment but also June’s. We haven’t announced it because it’s not finalized yet. If anyone thinks that after we avoided default in 2023—when we inherited practically nothing—we’re going to default now, they should know we won’t,” he stated.
Trump – Milei Meeting
Meanwhile, preparations are underway for a potential bilateral meeting between Milei and Donald Trump, which could take place in the weeks leading up to October’s legislative elections.
Washington’s support for Milei’s economic program is not new. In April, Treasury Secretary Scott Bessent visited the Casa Rosada and praised the President’s “bold economic reforms” following the lifting of capital controls. At a closed-door investor meeting hosted by JPMorgan at the White House, Bessent was even more explicit: “If Argentina needs it, in the event of an external shock, and if Milei stays the course, we would be willing to use the Exchange Stabilization Fund (ESF),” he said, according to Bloomberg.
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