Argentina has fully repaid the funds drawn from a $20 billion credit line with the Trump administration, U.S. Treasury Secretary Scott Bessent announced on Friday. The repayment marks a significant milestone for Argentine President Javier Milei's efforts to restore confidence in the country's struggling economy.
Bessent confirmed that Milei's libertarian administration had 'quickly and fully repaid its limited draw,' though he did not specify the amount. The U.S. Treasury's latest report indicated that Argentina's central bank had exchanged pesos for $2.5 billion through the swap as of the end of October. The Argentine Central Bank later verified Bessent's statement.
The credit line, which provided dollar liquidity to the cash-strapped Argentine government, had been a contentious and largely unprecedented U.S. rescue. It halted a market rout ahead of crucial midterm elections last October, which Milei's party won decisively, cementing support for his austerity programme and easing investor concerns about debt repayment. In a further sign of renewed optimism, Argentina issued a dollar bond last month for the first time in eight years.
Bessent praised the repayment as a landmark that justified the Treasury's bailout, which had drawn criticism for risking taxpayer funds and raising questions about the consistency of Trump's 'America First' foreign policy. He described the deal as an 'America First homerun deal' that stabilised a key ally and generated tens of millions in profit for Americans. Argentine Economy Minister Luis Caputo thanked the Trump administration for its trust in the country's economic policy.
Despite the repayment, Argentina's foreign exchange reserves remain perilously low, and the country faces further strain from upcoming repayments on International Monetary Fund loans and other private debt.
