US Treasury, Argentina Forge Economic Stabilization Pact
(MENAFN) The US Treasury Department finalized an economic stabilization agreement with Argentina’s Central Bank, described by Secretary Scott Bessent as "a bridge to a better economic future for Argentina."
The announcement was made public on Tuesday, signaling a new phase in cooperation between the two nations.
Secretary Bessent highlighted the significance of President Javier Milei’s initiatives to reverse the country’s long-term decline, which he attributed to the "radical leftism of the Peronists."
He emphasized that Argentina now has a chance to adopt economic freedom, clarifying that this stabilization pact is designed as a "bridge to a better economic future for Argentina," rather than a bailout, in a statement posted on the US social media platform X.
Bessent praised Milei's determined efforts to undo previous economic policies characterized by "excessive spending, fiscal indiscipline and irresponsible borrowing."
He also mentioned the International Monetary Fund (IMF) as a supporter of Argentina’s robust economic strategy, reinforcing the country’s path toward recovery.
Expressing the Trump administration’s endorsement of Milei’s current reforms and careful fiscal policies, Bessent underscored the importance of preventing another failed state in Latin America.
He noted, "a strong, stable Argentina as a good neighbor is explicitly in the strategic interest of the United States."
Earlier, on October 9, Bessent revealed that after talks with Argentine Economy Minister Luis Caputo, the US had directly bought Argentine pesos and agreed to a $20 billion currency swap arrangement with Argentina’s central bank.
In line with this, the Argentine Central Bank announced on Monday the signing of a pact with the US Treasury Department valued at up to $20 billion, aimed at maintaining exchange rate stability.
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