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US could offer Argentina credit line if ’external shock’ hit, Bessent says in remarks By Reuters
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IntroductionJPM-1.13%US Dollar Argentinian Peso0.01%By David LawderWASHINGTON (Reuters) - U.S. President Donald ...

By David Lawder
WASHINGTON (Reuters) - U.S. President Donald Trump’s administration would be willing to offer Argentina a credit line if an "external shock" jeopardized the country’s economic turnaround, according to a transcript of comments by Treasury Secretary Scott Bessent seen by Reuters.
The comments were made in a closed-door meeting in Washington and shared with Reuters by a person inside the room. Bloomberg first reported the news, citing sources.
According to the comments by Bessent, who recently traveled to Buenos Aires, the U.S. government would be willing to use the Exchange Stabilization Fund to support Argentina if something happened through no fault of its own.
Argentina, a major grains producer with large troves of shale and battery metal lithium, is battling to exit one of its worst economic crises, with tough austerity under libertarian President Javier Milei helping stabilize the economy.
Milei is a close ideological ally of Trump and recently sealed a $20 billion loan deal from the International Monetary Fund. Milei has pushed a zero deficit agenda and focused on tamping down inflation.
"I think if they continue with what they are doing, if they stay the course, even, I would be willing to use the exchange stabilization fund to smooth over their adjustment," Bessent said, according to the comments shared with Reuters.
"If something happens for no fault to their own, then I think that we at Treasury would be willing to step in and help smooth things over."
Milei has won plaudits from economists and investors for stabilizing Argentina’s currency, reining in triple-digit inflation and navigating through a tough recession.
The country, however, remains on fragile ground, with foreign currency reserves depleted - though boosted by the new IMF funds - and local industry in need of investment.
Bessent, however, suggested Milei could avoid the traps previous governments have walked into, including conservative Mauricio Macri who pushed orthodox reforms and got a massive IMF bailout in 2018 that failed to avert economic crisis.
"The Macri government had an incredible opportunity, and I was a big fan of Mauricio, but he blinked," Bessent said, according to the comments shared with Reuters.
"And as soon as he blinked, the market came and got him. My sense is that Milei is not going to blink."
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