US is working on doubling aid to Argentina to $40 billion by tapping private funding sources

[Zorro]

Source: AP via Yahoo Finance

The Trump administration is looking to provide an additional $20 billion in financing for Argentina through a mix of financing from sovereign funds and the private sector.

That would come on top of the $20 billion credit swap line that the U.S. Treasury pledged to Argentine President Javier Milei and his government this month to bolster the South American nation's collapsing currency.

“We are working on a $20 billion facility that would complement our swap line, with private banks and sovereign funds that, I believe, would be more focused on the debt market,” Treasury Secretary Scott Bessent told reporters Wednesday. He called it “a private-sector solution” and said "many banks are interested in it and many sovereign funds have expressed interest.”

At a White House meeting Tuesday with Milei, Republican President Donald Trump said his administration wanted to help “our neighbors” with the aid package, but he also suggested that the money could be pulled if Milei's party did not prevail in the Oct. 26 midterm elections.

Read more: https://finance.yahoo.com/news/us-working-doubling-aid-argentina-184019740.html

[Prairie Gates]

1. What a corrupt racket: high interest loans to Argentina guaranteed by the US Treasury!

They're already fleecing the tax payer to prevent Argentina defaulting on their bonds and private credit loans. Now they will tap additional private credit, which they are implicitly backing with more taxpayer money, to pay back the same private credit and investment banker idiots who continued to lend money to Argentina in the first place. Well, I guess they're not idiots, because they paid a fraction to elect the corrupt Trump and install the corrupt Supreme Court so they could continue to make loans they knew could not be repaid so they could suck the interest payment in bailouts from the US government that they put into place to secure their high risk loans.

It's nice to charge 13% - 19% interest on a high risk Argentina loan rather than what you'd get from a US Treasury (1.5%-2.5%), especially when you're getting the same guarantee as a US Treasury! Nice deal if you can get it.

[peppertree]

15. And here's the kicker: it's all for NOTHING!

Because Milei's narco-capitalist party is dead on arrival already...

(he calls it "anarcho-capitalist" - but has at least two confirmed narco-politicians in Congress).

Evidence of a massive kickback scheme led by his own sister (and Chief of Staff)...of a crypto scam that cost his own dopes (including some in the U.S.) millions... of links to drug traffickers like Fred Machado (who apparently even helped write economic policy)... and, of course, a sharp double-dip recession, have all but doomed his party's chances.

Of course, Cheetolini understands none of this - so Milei and Bessent (whose pals are trying to dollarize and offshore their Argentine investments in a hurry) are milking the fat bastard for all he's worth.

At U.S. taxpayer expense - needless to say.

[Irish_Dem]

2. Musk said the US is going broke and has no money for federal workers.

No money for science, education, Social Security, Medicare, etc.

[Nigrum Cattus]

3. it's the vulture capitalists -

https://www.cadtm.org/spip.php?page=imprimer&id_article=8589

[Strelnikov_]

4. "Bailing out Bessent's Buddies' Bets on Argentina"

https://paulkrugman.substack.com/p/bailing-out-bessents-buddies-bets

Two weeks ago I wrote about Scott Bessent’s plan to aid Argentina, saying “This is about ideology and Trumpian fealty, not America’s interests.” I have since learned that what I said was true but incomplete, because I was insufficiently cynical. Mea culpa.

. . .

A new post by Matthew Klein explains the full extent of the scam: When outside players like the IMF or, now, the U.S. Treasury department lend money to the Argentine government, the money promptly flows right out again as investors — both domestic and foreign — take advantage of attempts to prop up the Argentine peso by engaging in capital flight, pulling their money out of the country. In other words, US taxpayer money is propping up the peso, allowing hedge funders to sell their Argentine assets at inflated prices, after which the peso will promptly fall again.

One of the people who urged Bessent to intervene on Milei’s behalf is Bessent’s old friend and former colleague Rob Citrone, a hedge-fund billionaire who bet big on Milei’s success and bought more Argentine assets just before Bessent’s announcement. Will Citrone take advantage of Bessent’s taxpayer-backed bridge loan of late September — because that’s all it is — to take his money and run? If he doesn’t he’s a fool, because that’s what all the smart money is doing. Argentina is currently burning through billions of dollars in reserves to defend the peso as everyone rushes for the exits.

[Javaman]

5. nice little money laundering gig they got going. nt

[Strelnikov_]

10. Buy peso low

Sell peso high, once it has been propped up by $

[no_hypocrisy]

6. As were now talking $40 billion,

wouldn’t indicate severe insolvency?

[wolfie001]

7. Over-the-top payments to South American fascism

As expected from the fat orange imbecile. Wonder what these clowns are doing behind the scenes.

[muriel_volestrangler]

8. For Sale: One Used Government (slight chainsaw marks)

Good opportunities for development without pesky laws etc. getting in the way. Would suit libertarian or apocalypse enthusiast who gets seasick so can't contemplate seasteads. Comes with passable soccer team, and all the beef you can eat.

Offer only applies if election won in a few months. No refunds. Agent's fee payable to Trump Corporation crypto account c/o UAE. Tell them Donny Prize-Winner sent you.

[LiberalArkie]

9. Aiding old German Nazi - Argentine families?

[doc03]

11. Is that his obsession with Argentina, is he

planing to escape to Argentina like the Nazis?

[LiberalArkie]

12. When his cartel looses the election they are going to mass escape somewhere. Maybe on the Qatar airplane

escorted by Qatar Air Force?

[doc03]

13. Nine months ago nobody would have

imagined something like that.

[Miguelito Loveless]

14. The "private sector"

is not going to give Argentina $20 billion absent the US co-signing the loan. Argentina will default, putting us on the hook for $40 billion.

[BlueKota]

16. I thougt Magats oppose foreign aid?

Hopefully this will tick more of them off so they stay home at election time.

[JI7]

17. There is something personally in it for Trump

it could even be that some or most of that money will be going to him.