In a significant development for Argentina's embattled economy, the nation has fully repaid the funds it withdrew from a $20 billion credit line extended by the United States. The announcement was made on Friday, 9 January 2026, by US Treasury Secretary Scott Bessent, marking a crucial milestone for the radical libertarian administration of Argentine President Javier Milei.
A Swift Repayment and a Political Victory
Secretary Bessent confirmed that President Milei's government had "quickly and fully repaid its limited draw" on the credit facility. While the exact sum repaid was not specified, a previous US Treasury report indicated that Argentina's central bank had exchanged pesos for $2.5 billion via the swap by the end of October 2025. The Argentine Central Bank later verified Bessent's statement.
This financial rescue package, which was both contentious and largely without precedent, was orchestrated by the Trump administration. It provided vital dollar liquidity to an ideologically aligned government facing a cash crisis. The intervention is credited with halting a severe market downturn in Argentina ahead of pivotal midterm elections last October.
Restoring Investor Confidence and Future Challenges
The repayment is seen as a direct result of Milei's political success. His libertarian party secured a major victory in the October vote, solidifying support for his harsh austerity measures and calming investor fears about the country's ability to manage its debts. In a clear sign of renewed market optimism, the Argentine government last month issued a dollar-denominated bond for the first time in eight years, signalling a potential return to international capital markets.
Secretary Bessent framed the successful transaction as a vindication of the US decision to assist Argentina. He stated that thanks to Argentina's deposit, the US Exchange Stabilization Fund used for the bailout no longer holds any Argentine pesos. He hailed the deal as an "America First homerun," emphasising that it stabilised a key ally and generated tens of millions in profit for American taxpayers.
Geopolitical Alliance and Economic Reality
Argentina's Economy Minister, Luis Caputo, expressed gratitude to the Trump administration for its "trust in our economic policy." He described the geopolitical alliance as "excellent" for Argentina and highlighted the importance of having the "explicit support of the most important country in the world."
However, significant economic hurdles remain. Argentina's foreign exchange reserves are still perilously low, and the country faces mounting pressure from upcoming repayments on previous International Monetary Fund loans and other private debts in the coming months. The repayment of the US credit line is a positive step, but the path to full economic stability is far from complete.
