Milei, asked about US Treasury talks, says negotiations are advanced

Argentina has been working on strategies to ensure it can meet about US$9.5 billion in debt payments due next year, President Javier Milei said on Friday when asked whether he expected the US Treasury to come to the rescue of the troubled South American economy. 

“Those negotiations take time and and we don’t make announcements until it’s confirmed,” Milei said in an interview with a local TV channel without referencing the US Treasury. “But we are working very hard, we’re very advanced, and it’s a matter of time too.”

Local media reported that his comments signalled advanced discussions with the US Treasury, which did not respond to a request for comment.

Financial support from Washington would provide relief to policymakers who are trying to reassure investors that Milei can sustain his austerity push after October’s midterm elections.

Investor scepticism has added pressure on the peso. The Central Bank spent about US$1 billion of its reserves in just two days this week to prevent a devaluation. 

Milei’s press office didn’t elaborate on his remarks. The economy ministry declined to comment. Economy Minister Luis Caputo made similar remarks in a podcast Thursday evening.

“For the past two or three months, we’ve been working to guarantee the payment of bond maturities,” Caputo said. “We haven’t announced it because we are still working on it. We announce things once they are finalised.”

Shortly after his visit to Argentina in April, Treasury Secretary Scott Bessent told a private gathering of investors that the US could consider tapping its Exchange Stabilisation Fund to support its South American ally. The Treasury hasn’t publicly commented on the idea since.