In a meeting today (14.10.2025) the US President Donald Trump He is expected to officially announce a $ 20 billion support package with his Argentine counterpart to help his ally win the interim elections on October 26 in the October 26th in the October 26th. Argentina.
Last week, the US Department of Finance even began buying the damaged Argentinean peso, which currently negotiates at $ 1,350 per dollar, a sharp decline in 2018 exchange rate, which was about 25. He collapsed shortly after receiving the IMF loan during his first term.
As the recession worsened and inflation was soaring, Makri (former Argentinean president) suffered an overwhelming defeat in the 2019 presidential election. Shortly afterwards, Argentina announced the latter in a long history of payments.
Miley is now facing many of the same elements that have plunged Makri – including investor fears that the powerful, leftist movement of the Peronists can return to power and overthrow politics.
The Argentinean liberal leader has managed to bring the country’s budget to a surplus and reduce inflation to about 30% from a high level of 300%. It also caused market problems spending billions to support the peso, so most investors overestimated it.
If Miley now needs US help, this is not due to a prior lack of money from Washington. The IMF, under the pressure of Trump’s team, agreed to grant another $ 20 billion loan just in April. On the contrary, Miley’s unjustified political mistakes – as well as the renewed opposition – put him in a difficult position before the Argentine interim elections.
Analysts say that even another US help may not overturn Miley’s fate, at least could help to stop the erosion of his support by voters who are tired of austerity and are still waiting for a recovery in jobs, salaries and growth.
“Without this help, the currency would go against it,” said Mariel Fornoni, director of Management and Fit, a polling company in Buenos Aires. “This would affect prices, eliminating the benefits of inflation that was the strong point of Miley.”
He said that a US rescue package “will not sound so nice to the Argentines who have experienced many rescues and their consequences”, but it could at least keep the economy stable until election day.
Of course there are some basic differences Between the latest Argentine rescue by Trump – using US public money – and the IMF version of 2018. Then, a historic drought destroyed exports of agricultural products, Argentina’s most valuable dollars to create reserves and repayment of debt. Miley’s economy had a steady harvest this year. It was his overwhelming defeat in the elections of Buenos Aires last month that caused panic in the markets for his prospects.
Miley’s American saviors have their eyes long beyond the barrier of the intermediate elections. Finance Minister Scott Besed sees a successful Argentina as a model for other Latin American countries – Bolivia, Colombia, Chile – who have left -wing leaders in power and presidential elections approaching, as well as a stronghold against Chinese influence.
“Argentina is a lighthouse down there, and there is a chance that many other countries will follow,” Bessed said in an interview with CNBC.
Argentina is also an important producer of important industrial metals such as lithium and copper. This probably affects the thinking of Bessed and Trump, according to Kezia McKeague, Managing Director of McLarty Associates in Washington.
“The difference between the present moment in Washington and the era that Makri came with the hat in the IMF is that there is a much deeper understanding of the importance of critical minerals for US national security,” he said. In terms of the US, “Argentina is somehow considered a fundamental market. Of course, there is a significant resemblance to that Makri and Miley are considered to be friends of President Trump. “
There are and some similarities And in terms of staff. While the IMF restructured the negotiations with Argentina after the 2018 disaster, Miley returned some key executives from Makri’s economic team.
Miley’s finance minister, Louis Kaputo, was Makri Finance Minister and then led the Central Bank, stating public years later that he opposed Argentina’s appeal to the IMF. Today’s head of the Central Bank, Santiago Bousili and Finance Minister Pablo Kirnos, also held high policy positions under Makri, while Miley’s deregulation tsar, Federico Sturchenegger, led the monetary.
Kaputo and Bessed meet the first days of the Makri government in 2016, when Argentina was negotiating with creditors who had not accepted the agreement so that it could return to capital markets.
Kaputo remembered that he was criticized by the IMF after billions of dollars during his three -month term at the Central Bank in 2018, in an unsuccessful attempt to stop the flight of funds.