Bessent Says Argentina’s Bailout Could Reach $40 Billion
“We are working on a $20 billion facility that would complement our swap line, with private banks and sovereign funds."
Quick overview
- The U.S. Treasury has purchased Argentine pesos as part of a financial rescue package for Argentina potentially totaling $40 billion.
- Treasury Secretary Scott Bessent confirmed that $20 billion of this package is from an existing currency swap, with another $20 billion being negotiated with private banks and sovereign wealth funds.
- Wall Street's main indexes are trading higher, driven by expectations of a Federal Reserve rate cut and improved U.S.-China trade relations.
- Notable stock movements include Bunge rising by 12.11% and Progressive declining by 9.3%.
“The U.S. Treasury bought Argentine pesos in the market this morning,” said Treasury Secretary Scott Bessent.
Bessent confirmed that Washington’s financial rescue package for Argentina could reach $40 billion, of which $20 billion corresponds to the currency swap already in place, while the other $20 billion is being negotiated with private banks and sovereign wealth funds. He also clarified that the U.S. government again purchased pesos in the local market this Monday.
“We are working on a $20 billion facility that would complement our swap line, with private banks and sovereign funds that, I believe, would be more focused on the debt market,” he told reporters in Washington. “So that would total $40 billion for Argentina,” he emphasized.
U.S. Market
Wall Street’s main indexes are trading higher this Wednesday, as renewed expectations of another Federal Reserve rate cut take center stage. Sentiment also improved due to easing trade tensions between the U.S. and China, after the U.S. government confirmed that Donald Trump will meet with Xi Jinping.
In this environment, the S&P 500, which tracks the largest companies on the New York Stock Exchange, is up 1.18%, while the tech-heavy Nasdaq Composite rises 1.35%. The Dow Jones Industrial Average is also moving higher, gaining 0.90%.
The most volatile stocks of the session include Bunge (+12.11%), Enphase (+8.2%), and Morgan Stanley (+6.13%). On the losing side, the biggest declines are seen in Progressive (-9.3%) and PNC Financial (-4%).
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