U.S. Treasury Secretary Scott Bessent signaled that “all options” are on the table to stabilize Argentina, including potential loans to the central bank, direct FX support, and purchases of dollar bonds via the Exchange Stabilization Fund. The remarks, ahead of a meeting with President Javier Milei, aimed to shore up confidence before Argentina’s midterms, per this report on U.S. support.
Markets reacted fast: Argentina’s dollar bond yields fell from over 17% to around 15%, and the peso strengthened roughly 2%. Investors called the pledge a needed “circuit breaker” but stressed that conditions and implementation details will determine durability.
The stakes are large: Argentina accounts for about 35% of the IMF’s $164 billion in outstanding programs and faces nearly $10 billion in IMF payments in early 2026. The central bank reportedly burned through more than $1 billion last week defending the peso’s crawling band, highlighting fragile reserves.
Politics could complicate execution. The support drew scrutiny in Washington—Sen. Elizabeth Warren has questioned a perceived “bailout,” per Bloomberg—and Argentina’s domestic setbacks raise the bar for conditionality. For investors, the upside is a stabilization window; the risk is moral hazard without credible FX and fiscal anchors.
