The President of the United States, Donald Trump, is set to welcome President Javier Milei for discussions at the White House on October 14, a move that further strengthens his ally following the unveiling of a multi-billion-dollar rescue package from the US. The meeting is scheduled for two weeks prior to the much-anticipated midterm elections in Argentina, which may impede the reform agenda of the right-wing Milei.
Argentina’s Foreign Ministry announced on Tuesday that the upcoming meeting, marking the second encounter within a month between Trump and Milei, is expected to bolster the “strategic alliance” between Washington and Buenos Aires. The two leaders engaged in discussions last week during the UN General Assembly in New York, following which US Treasury Secretary Scott Bessent declared a US$20-programme of support aimed at stabilizing the Argentine peso amidst ongoing financial pressures. Milei’s administration engages in dollar sales as the peso begins to depreciate once more.
The announcement of a US$20-billion swap line – typically a currency swap between two central banks – facilitated the peso’s recovery against the dollar, the currency in which Argentines hold their savings. The rescue package detailed by Bessent encompassed the potential acquisition of Argentine public debt along with a direct credit line from the US Treasury, the specifics and amount of which are yet to be disclosed. In an interview, Milei – who faced a significant setback in the Buenos Aires provincial elections in early September – praised a “unprecedented” display of backing from Trump.
Milei’s financing assurances provide a temporary boost to Argentine bonds and the peso. “If Argentina requires the funds, the United States will provide the financial resources necessary to service the debt,” he stated, elucidating the swap mechanism. Argentina is confronted with US$4 billion in debt repayments due in January and an additional US$4.5 billion scheduled for July 2026. The nation, known for its repeated defaults on debt, secured a loan of US$20 billion from the International Monetary Fund in April, in addition to the US$44 billion it had received in 2018, which was subsequently renegotiated.