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Argentina repaid most of a $20 billion US swap line, with business closures and poverty in focus

The repaid US currency line and the surge in closures raise questions for investors and policymakers about the cost of Argentina's economic reforms.

Photo: Yahoo Finance

What happened

In October 2025, Argentina's central bank and the US Treasury signed a $20 billion currency swap line, which was part of a rescue package put together by Treasury Secretary Scott Bessent ahead of Argentina's midterm vote. Yahoo Finance+1 Argentina drew $2.5 billion from the line and fully repaid it in January 2026, using financing from an unnamed multilateral institution. 24/7 Wall St. Bessent confirmed the line turned a profit for American taxpayers. Yahoo Finance The think tank Fundar counts about 32,300 business closures since Javier Milei took office in December 2023, a figure representing about 6% of Argentine companies. Yahoo Finance

Around it

Inflation fell from about 200% to 30% under Milei's austerity measures, but poverty rose back to nearly a third of the population, and his approval stands at 36%. Yahoo Finance The Republican Party lost the US midterm elections, and Democrats now control both chambers of Congress, raising questions about whether Trump will have room to repeat the financial support extended to Milei. Buenos Aires Times Several legislative initiatives have already been introduced in Congress to restrict this type of federal intervention, while Bessent has said on several occasions that he would repeat a similar operation. Buenos Aires Times

What comes next

Argentina faces its next election in 2027, and the lead-up to it may bring further currency turbulence that could test US support. Buenos Aires Times

Sources

  1. Yahoo FinanceTrump’s Treasury Extended Argentine Leader Milei A $20 Billion Lifeline Last Year. Now Economists Warn Of Recession As Think Tank Says About 32,300 Argentine Businesses Have Closed On His Watch
  2. 24/7 Wall St.Trump's Treasury Extended Argentine Leader Milei A $20 Billion Lifeline Last Year. Now Economists Warn Of Recession As Think Tank Says About 32,300 Argentine Businesses Have Closed On His Watch
  3. Buenos Aires TimesHow Trump's defeat in US midterms might affect Argentina

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