Trump backs Milei, downplays need for 'bailout' in Argentina

US President Donald Trump offered broad support for Argentine leader Javier Milei in New York during their first bilateral meeting, but stopped short of providing details about financial aid for the South American government. 

“He’s done a fantastic job,” Trump said Tuesday sitting next to Milei on the sidelines of the United Nations General Assembly. “We’re going to help them. I don’t think they need a bailout.”

In a tepid first step, the World Bank – of which the United States is the largest shareholder – sped up support for Milei’s government, pledging to deploy US$4 billion of a pre-existing US$12-billion aid package over coming months.

A White House official said a financial announcement on Argentina would be coming later Tuesday.

During the meeting, Trump also endorsed Milei for a second term in Argentina, with the next presidential election due in 2027. Trump was flanked by Treasury Secretary Scott Bessent and Secretary of State Marco Rubio, while the Argentine leader had Economy Minister Luis Caputo, Foreign Minister Gerardo Werthein and his sister, Karina Milei, by his side.

Bessent said Monday that “all options” were on the table for US support as Milei’s government works to keep Argentina from falling back into crisis. Argentine assets rallied in anticipation of Trump’s meeting with Milei and expectations of a financial lifeline. 

Dollar bonds extended gains after Tuesday’s meeting, with notes maturing in 2035 advancing more than two cents to trade above 59 cents on the dollar, according to indicative pricing data compiled by Bloomberg. The peso was also up by three percent.

Until Bessent’s vow of support, Milei had been under increasing pressure after losing a provincial vote by a landslide earlier this month. As investors started pulling money out of Argentine assets, the Central Bank spent more than US$1 billion of its precious reserves to boost the peso amid a major rout.

Caputo, speaking to reporters at his hotel after the meeting with Trump, said he discussed a “specific figure” with Bessent but didn’t divulge the number.

The economy minister used the moment to hit back at Milei’s critics, saying that the pledge of support from the US is proof that his trips to Florida and Washington to court Trump are paying dividends. “Sometimes they criticised him for that and, well, here you have the payout,” Caputo said. “So I’d say the president’s trips were worth it.”

Milei faces a crucial electoral test in an October 26 midterm vote, which will refresh about half of Congress in Argentina and be pivotal for continued political support for his economic agenda.