U.S. looks to increase aid to Argentina to $40B — report

[Argentinan Flag]
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The U.S. is looking to double the aid that it will provide Argentina to $40 billion via a combination of financing from sovereign funds and the private sector, the Associated Press reported.

Last week, the U.S. Treasury finalized a $20B currency swap framework [https://seekingalpha.com/news/4503202-us-finalizes-20b-currency-swap-framework-with-argentina-directly-buys-pesos] with Argentina and directly purchased Argentine pesos (ARS:USD [https://seekingalpha.com/symbol/ARS:USD]).

Regarding the aid package, U.S. President Donald Trump had warned earlier that while he wanted to help, he would pull the deal if President Javier Milei does not win the October 26 midterm elections.

Earlier in September, Argentina's financial markets were facing significant turbulence, with domestic stocks and U.S.-listed ETFs seeing a downturn amid a strained political environment. The sell-off was driven by Milei's ruling party losing in a key provincial election in the Buenos Aires province.

Argentina's economy has been battling challenges for the past few months. In April, the International Monetary Fund reached a preliminary agreement with Argentina on a $20 billion bailout.

Milei won praise from Trump and his allies for aggressively slashing government spending, but his popularity is waning at home amid economic contraction and rising unemployment.

The country's benchmark, the S&P MERVAL Index (MERVAL [https://seekingalpha.com/symbol/MERVAL]) was up 1.5%. The Global X MSCI Argentina ETF (NYSEARCA:ARGT [https://seekingalpha.com/symbol/ARGT]), which provides U.S. investors with exposure to Argentine equities, rose ~1%.

MORE ON ARGENTINA

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* Trump: U.S. support for Argentina hinges on upcoming elections [https://seekingalpha.com/news/4504145-trump-us-support-argentina-upcoming-elections]
* U.S. finalizes $20B currency swap framework with Argentina, directly buys pesos [https://seekingalpha.com/news/4503202-us-finalizes-20b-currency-swap-framework-with-argentina-directly-buys-pesos]