Argentina pays back $2.5 billion to U.S. Treasury
Argentina has repaid $2.5 billion to the U.S. Treasury, returning funds it had received in October as part of a $20 billion currency swap agreement, according to authorities from both countries.
Argentina's central bank said in a statement the repayment was completed Friday, using resources from multilateral financial institutions, without naming them, News.Az reports, citing foreign media.
Argentina only used $2.5 billion from the swap because the credit line functioned as an emergency backstop, not as a loan that had to be fully drawn. The country took only what was necessary at a specific moment to cover dollar shortages and reassure the markets.
U.S. Treasury Secretary Scott Bessent confirmed the repayment in a post on X.
"Stabilizing a strong ally and generating tens of millions in gains for Americans is a major achievement of the America First initiative," Bessent wrote.
"Setting the course for Latin America, with a strong and stable Argentina that helps consolidate a prosperous Western Hemisphere, is clearly in our best interest."
Bessent said the Treasury activated the Exchange Stabilization Fund under authority granted by Congress. He said the mechanism allowed the United States to assist Argentina at a critical moment marked by an acute liquidity shortage and immediate pressure on the exchange rate and financial stability.
"Only the United States could act with the speed we did in October to preserve market stability," he said.
Argentina turned to the swap during a period of severe financial stress, when a shortage of hard currency threatened economic stability. The government needed foreign exchange to meet immediate payments, avoid a sharp devaluation of the peso and keep trade functioning. Without the support, officials warned of the risk of another crisis.
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