WASHINGTON, Sept 24 (Reuters) - The U.S. is currently in negotiations for a $20 billion swap line with Argentina's central bank and stands ready to do what is needed to support the South American country, U.S. Treasury Secretary Scott Bessent said on Wednesday in a post on X.
Bessent said the U.S. is prepared to purchase Argentina’s U.S. dollar-denominated bonds and will do so as conditions warrant. The U.S. is also set to deliver significant standby credit via the Exchange Stabilization Fund, he said.
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"Argentina has the tools to defeat speculators, including those who seek to destabilize Argentina's markets for political objectives," he said. "I will be watching developments closely and the Treasury remains fully prepared to do what is necessary."
Bessent, a former hedge fund executive, also said the U.S. is ready to purchase secondary or primary government debt and is working with the Argentine government to end the tax holiday for commodity producers converting foreign exchange.
He said numerous U.S. companies had told him they intended to "make substantial foreign direct investments" in multiple Argentine sectors "in the event of a positive election outcome," but gave no details.
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Argentina votes on October 26 for legislative midterm elections, in which President Javier Milei's right-wing party aims to gain seats to strengthen its minority position.
Argentine assets rose sharply on Wednesday after Bessent provided details on his previous pledge to support Latin America's third-largest economy and Milei, a close ally of President Donald Trump.
The country's embattled peso currency has strengthened this week in a sharp reversal from last week, when the Argentine central bank burned through more than $1 billion of reserves to defend its currency.
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