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Argentina has repaid funds drawn from a $20 billion credit line trump card government, united states Ministry of Finance secretary Scott Bessant The announcement on Friday was a key step for Argentina’s president Javier Miley to restore confidence in the long-troubled economy.
Bessant said that in addition to payments to bondholders, Milley’s radical liberal government had “quickly and fully repaid limited drawdowns” without specifying the amount.
The latest report from the Treasury Department on the status of the credit line said that as of the end of October, Argentina’s central bank had traded $2.5 billion in pesos through swaps.
Argentina’s central bank confirmed Becente’s statement.
The controversial and unprecedented U.S. rescue operation provided dollar liquidity to the Trump administration’s cash-strapped ideological allies and prevented a plunge in Argentine markets ahead of last October’s crucial midterm elections.
Mire’s Liberal Party scored a major victory in the vote, solidifying support for its tough austerity plan and calming investor concerns about the crisis-plagued country’s ability to repay its debt. In another sign of renewed optimism about Milley’s reform, last month his government issued dollar bonds for the first time in eight years, heralding a return to international bond markets.
Bessent said the U.S. Exchange Stabilization Fund used for the bailout no longer holds Argentine pesos because of Argentina’s deposits.
He hailed the payment as a milestone justifying the Treasury Department’s bailout of Argentina, which has raised doubts about the consistency of Trump’s “America First” foreign policy and sparked a backlash in the United States for putting taxpayer funds at risk. Experts also criticized the opacity and apparent unconditionality of the loans.
“Stabilizing a strong U.S. ally and generating tens of millions of dollars in profits for Americans is an America-first home run deal,” Bessant wrote. “It is clearly in our best interest to set a course for Latin America where a strong and stable Argentina helps stabilize prosperity in the Western Hemisphere.”
Argentine Economy Minister Luis Caputo thanked the Trump administration for its “confidence in our economic policies.”
“It’s a fantastic reality for our country to be able to build this geopolitical alliance and know that we have the unequivocal support of the most important country in the world,” he said.
But Argentina is not out of the woods.
Its foreign exchange reserves remain dangerously low. The country will face further pressure in the coming months to repay previous IMF loans and other private debt.