MercoPress. South Atlantic News Agency

Bessent praises Argentina on swift repayment of swap

Bessent noted that emergency interventions were giving way to traditional market confidence

US Secretary of the Treasury Scott Bessent noted Friday that the Argentine government of President Javier Milei swiftly repaid US$2.5 billion from a recent currency swap in full, framing the operation as a landmark victory for the “America First” agenda and a signal of Buenos Aires' return to financial stability.

The funds stemming from a broader US$20 billion credit line established by the Trump administration in October last year were spent by Argentina's Central Bank (BCRA) to anchor the peso during a period of acute pre-election volatility.

Bessent also emphasized on X that the intervention by the Exchange Stabilization Fund (ESF) achieved its dual mandate of supporting a strategic ally while protecting the American taxpayer.

“Stabilizing a strong ally and generating tens of millions in profits for Americans is a great achievement of the 'America First' initiative,” Bessent stated. “Setting the course for Latin America —a strong and stable Argentina that contributes to consolidating a prosperous Western Hemisphere— is undoubtedly the best thing for us.”

Addressing previous domestic criticism regarding the use of the ESF, Bessent noted that the fund “has never lost money” and confirmed that this specific operation generated “tens of millions of dollars in profits.”

Bessent also credited Milei and Economy Minister Luis Toto Caputo for the “positive momentum” that allowed for such a swift settlement.“Only the United States was able to act as quickly as we did in October to preserve market and exchange rate stability,” he stressed. He further noted that the “Exchange Stabilization Fund currently has no pesos,” signaling the total closure of the intervention cycle.

The full repayment coincides with Argentina’s broader efforts to regularize its international standing. On the same day as the swap announcement, the Argentine government also settled US$4.2 billion in bond maturities, funded through privatization proceeds and market dollar purchases.

In Bessent's view, the era of emergency bilateral intervention may be giving way to traditional market confidence. “Markets are now meeting the financial needs of the Argentine Republic,” he remarked while highlighting that the international community and the International Monetary Fund remained strongly supportive of Milei’s “prudent fiscal strategy.”