'He inherited a mess': Trump promises ‘help’ for Argentina amid financial storm - Why this lifeline matters for President Javier Milei?
&imwidth=600&imheight=450&format=webp&quality=medium "'He inherited a mess': Trump promises ‘help’ for Argentina amid financial storm - Why this lifeline matters for President Javier Milei?")
U.S. President Donald Trump shakes hands with Argentina's President Javier Milei during the 80th United Nations General Assembly, in New York Photograph: (Reuters)
Milei, who came to power with a free-market agenda, has been struggling to keep investor confidence after a heavy defeat in Buenos Aires provincial elections earlier this month.
US President Donald Trump has pledged financial support for Argentina after meeting his ally, President Javier Milei, in New York. The talks took place on the sidelines of the United Nations General Assembly. “We’re gonna help them but I don’t think they need a bailout. He’s doing a fantastic job,” Trump said, while giving Milei his “full endorsement.”
Trump compared Milei’s challenge to his own political challenges. “He, like us, inherited a mess and what he’s done to fix it is good. … We need to make Argentina great again,” he told reporters.
What does this mean for Milei?
Milei, who came to power with a free-market agenda, has been struggling to keep investor confidence after a heavy defeat in Buenos Aires provincial elections earlier this month. The result raised doubts over whether his reforms will survive the upcoming mid-terms in October. Responding to Trump’s comments on social media, Milei thanked him for his “great friendship and this extraordinary gesture.”
How did the markets react?
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Trump’s show of support immediately calmed nervous investors. Argentina’s sovereign risk index, a key indicator of confidence in the country’s solvency, dropped sharply to 960 basis points after surging above 1,400 just days earlier. The peso also gained 3.15 percent after a turbulent week in which it lost nearly 5 percent despite Central Bank interventions.
US Treasury Secretary Scott Bessent said “all options” were on the table to help stabilise Argentina. Measures under discussion include swap lines, direct currency purchases, and debt acquisitions.
Bessent joined the Trump-Milei meeting along with Argentina’s Economy Minister Luis Caputo. Speaking afterwards, Caputo said a “specific figure” of US aid had been discussed, though he would not reveal details until the deal is finalised. He said that Washington had “not asked for anything in return.”
Alongside US backing, the World Bank said it was accelerating its $12 billion support plan announced earlier this year. An extra $4 billion will be released “over the coming months” to help Argentina weather its financial storm.
