US considers secured loans and bond purchases to support Argentina’s economy
Among the measures being discussed are a currency swap, the purchase of Argentine pesos, and the acquisition of dollar-denominated bonds through the US Treasury’s Exchange Stabilisation Fund (ESF), which manages some $22 billion in liquid assets.
Analysts say the latter two options are currently the most likely, even though the US has never applied them to Argentina.
A so-called repo loan—where Argentina would provide collateral such as reserves, US Treasury bonds, or future export revenues in exchange for dollars—appears to be gaining traction. The mechanism has been used before in Latin America, notably in Mexico’s 1995 rescue package, but not at this scale in Argentina. The possibility of the US directly buying Argentine bonds is also under consideration, a move that boosted bond prices and lowered the country’s risk index earlier this week.
Bessent has insisted that the support would come “without conditions”, but experts remain sceptical. Economists believe Washington could impose implicit requirements, such as restricting Argentina’s interventions in the currency market or abandoning its current exchange rate bands in favour of a full float. Others suggest the US could pressure Milei to cancel or avoid renewing Argentina’s existing currency swap with China.
If confirmed, this would be Argentina’s ninth debt operation with the US Treasury in the past four decades. While the measures could bring short-term relief, analysts warn that the credibility of Milei’s government will depend not only on external backing but also on political stability and the country’s ability to implement lasting reforms.
This story is written and edited by the Global South World team, you can contact us here.
