The United States flies with the help of Argentina. The United States Treasury said it was ready to “do what is necessary” on Monday “to support Argentina’s economy, while President Ultra Liberal, Javier Milei, is working to calm febrile financial markets after several political setbacks.
The Government of Javier Milei, a nearby ally of Donald Trump, has faced a crisis in the exchange rate for a few weeks, which has increased after an electoral slap at the beginning of September during a regional election in the province of Buenos Aires, perceived as a test for the medium -term legislative elections on October 26.
The Argentine president also suffered camouflets in Parliament, which spoke against several of his veto in texts related to the increase in funds for people with disabilities, university or an emblematic pediatric hospital.
The financial markets reacted by a strong depreciation of the weight and a decrease in obligations and actions.
United States support
It is in this context and when it seeks an American loan to cover debt deadlines, Javier Milei must meet with President Donald Trump and Treasury Secretary, Scott Besent, on Tuesday, apart from the United Nations General Assembly in New York.
United States “is ready to do what is necessary” to support Argentina, the US secretary said on Monday. “These options may include, among others, exchange lines, direct purchases of currency and government debt acquisitions called American dollars,” said Scott Besent.
In X, Javier Milei thanked Donald Trump and Scott Besent for his “unconditional support for the Argentine people”, believing that “those of us who defend the ideas of freedom must work together.”
The general director of the Kristalina Georgieva International Monetary Fund, also praised the statement of Scott Besent and stressed “the crucial role of partners in the promotion of strong policies for stabilization and growth for the benefit of the Argentine people.”
The United States has reached an agreement concluded in April by Argentina with the IMF for a loan of $ 20 billion, to which $ 12 billion were added in the World Bank and $ 10 billion in the Inter -American Development Bank.
Under the effect of drastic budget austerity and the great cuts in public spending, the Argentine president, chosen in December 2023 with the ambition to straighten the economy of his country, managed to stop chronic inflation, which exceeded 200% more than one year, with 33.6%.
“We work there”
The Argentine Foreign Minister, Gerardo Werthein, tried the meeting on Monday “very promising.”
Regarding the loan amount discussed with the United States Treasury, “there were many speculations, we talked about 30 billion dollars and this is absolutely false,” he said with Radio Miter, “we work there but for a more modest amount.”
Argentina, which has a history of economic crisis and hyperinflation, has become the years in the main debtor of the IMF.
In 2018, the South American country obtained a massive loan of $ 44 billion in the background, an amount whose country still has to reimburse the majority and for which the Peronist Government (left-left) that precedes that of Javier Milei negotiated a refinancing in 2022.
The Milei government also announced on Monday the suspension of cereal exports until October 31 to “generate a greater contribution in dollars,” according to presidential spokesman Manuel Adorni.
Source: BFM TV
