US ready to help with Argentina's fiscal turmoil - BBC

[PhilipDT]

US Treasury Secretary Scott Bessent has said the US is "ready to do what is needed" to help stabilise Argentina's escalating financial turmoil.

"All options for stabilization are on the table," Bessent wrote on social media, calling Argentina a "systematically important US ally in Latin America".

The message helped to calm financial markets, which have been rattled as recent election losses raise doubts about the future of Javier Milei's cost-cutting, free-market agenda.

The value of the peso has been plunging, while investors dump Argentine stocks and bonds.

US says 'all options' on table to help stabilise Argentina's fiscal turmoil

US Treasury Secretary Scott Bessent offers a pledge of support for Donald Trump ally Javier Milei.

www.bbc.com

 

[lemonade]

This was in the Wall Street Journal too.

https://www.wsj.com/world/americas/u-s-treasury-chief-hints-at-argentina-financial-rescue-334a3b3c?st=qwQ6Ev&reflink=desktopwebshare_permalink

 

[Larry]

"In 2026, the country will face debt payments of US$4 billion in January and US$4.5 billion in July. The Central Bank has not accumulated international reserves in recent months and Economy Minister Luis Caputo promised last week that the monetary authority would sell “down to the last dollar” to support the value of the peso. The circumstances have left economists asking how that debt would be paid."

Enough said!

 

[Bingo]

"In 2026, the country will face debt payments of US$4 billion in January and US$4.5 billion in July. The Central Bank has not accumulated international reserves in recent months and Economy Minister Luis Caputo promised last week that the monetary authority would sell “down to the last dollar” to support the value of the peso. The circumstances have left economists asking how that debt would be paid."

Enough said!

This does not seem like it can be sustainable. The peso is only holding its value with billions and billions of dollars of loans from various entities. The dollar starts to correct to fair value and then the IMF gives billions. The Central Bank can't seem to build up reserves and then the peso falls and then the only way it can get back is with more loans or emergency funds. Is this sustainable?

A few days ago it jumped up to almost 1550 which seems fairer to normal but it feels like it should be higher. Now it falls only because the USA says it will give an emergency loan. Just seems to be delaying the inevitable.

 

[ElQueso]

This was in the Economist.

No paywall.

 

[BA Bound]

Saw this. Not sure how reputable the BA Times is but this says Trump said Argentina doesn't need a bail out.

Trump says Argentina does not 'need' bailout at Milei meeting

US President Donald Trump declared Tuesday that he doesn't think Argentina needs a bailout as he met with President Javier Milei in New York.

www.batimes.com.ar

 

[VINO]

Saw this. Not sure how reputable the BA Times is but this says Trump said Argentina doesn't need a bail out.

Trump says Argentina does not 'need' bailout at Milei meeting

US President Donald Trump declared Tuesday that he doesn't think Argentina needs a bailout as he met with President Javier Milei in New York.

www.batimes.com.ar

I doubt Trump's base would be for bailing out Argentina. Trump sounds like he is also against it. Hilarious that Trump gave him a copy of his own Tweet. Milei comes off as a loser more and more each day.

 

[Blockchain]

Saw this online.

https://buenosairesherald.com/economics/us-treasury-announces-full-scale-bailout-to-argentina-bond-purchase-swap-and-credit-line

 

[Bingo]

The USA support is only a bandaid for Argentina.

 

[Bobb]

This does not seem like it can be sustainable. The peso is only holding its value with billions and billions of dollars of loans from various entities. The dollar starts to correct to fair value and then the IMF gives billions. The Central Bank can't seem to build up reserves and then the peso falls and then the only way it can get back is with more loans or emergency funds. Is this sustainable?

A few days ago it jumped up to almost 1550 which seems fairer to normal but it feels like it should be higher. Now it falls only because the USA says it will give an emergency loan. Just seems to be delaying the inevitable.

I get your point, it really does feel like Argentina is just patching things up with loans instead of fixing the fundamentals. Every time the peso looks like it’s moving to a more realistic value, another bailout or emergency loan props it up again. It keeps the short-term calm, but long-term it feels like we’re just kicking the can down the road. Without building reserves or stabilizing confidence, it’s hard to see how this can last.

 

[Finance Prof]

The USA support is only a bandaid for Argentina.

It might be a bandaid but the support is HUGE. Without what they are doing the peso would have sunk completely. We were on a collusion course a few days ago. US signaled HUGE support which helped. For long, time will tell.