President Trump hosts Argentinian President Javier Milei amid bailout

by · UPI

Oct. 14 (UPI) -- Argentinian President Javier Milei is visiting the White House on Tuesday after agreeing to accept a $20 billion currency bailout from the United States.

Treasury Secretary Scott Bessent said the bailout occurred via a currency exchange between each nation's respective central banks, according to The New York Times.

"President Milei is restoring economic stability after decades of Argentine mismanagement," Bessent said in a social media post on Sept. 25.

"Markets are not losing confidence in him," Bessent added. "They are looking in the rearview mirror."

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Bessent said the Treasury Department "is resolute in our support for his reforms."

Milei is trying to avert a pending financial crisis that endangers Argentina's conservative political party alliance that helped Milei to win the nation's 2023 presidential election, the BBC reported.

The Argentinian president has lowered inflation and greatly reduced the nation's federal budget during his 20 months in office, which raised voters' hopes for an economic turnaround.

Investors have begun to panic, though and are selling off their holdings of the Argentinian pesos and liquidating other assets amid concerns that the nation might default on its debt obligations.

Bessent on Thursday announced the $20 billion bailout was finalized after four days of negotiations in Washington with Argentina's Minister of Economy Luis Caputo.

The U.S. Federal Reserve already has purchased $20 billion in Argentinian pesos to help stabilize the South American nation's economy.

Trump said the deal is important given Argentina's mid-term elections are scheduled on Oct. 26.

Milei's La Libertad Avanza party holds a minority of seats in Argentina's National Congress, with only six of 72 Senate seats and 40 of the 257 seats in the Chamber of Deputies.