Argentina’s government announced a new $20 billion rescue package from the United States, a key move to shore up the country’s struggling economy. The deal, signed this week, aims to help Argentina meet the payment demands of its debt creditors and keep the economy from spiralling further.
Under the agreement, the U.S. pledges a mix of financial support and trade incentives. The package includes $10 billion in direct funding to cover Argentina’s debt repayment and an additional $10 billion in trade offsets that would lower tariffs on U.S. exports to Argentina. The goal is to give the Argentine peso more stability and encourage investment.
The rescue comes amid a steep recession, high inflation, and a sharp drop in the value of the peso. Argentina has been under pressure to restructure its sovereign debt, which totals more than $100 billion. The new loan is expected to ease the country’s debt burden and improve its credit rating.
This comes after a wave of policy changes, including tighter fiscal rules and the implementation of new tax rates. Argentina’s finance minister said the package will allow the government to keep jobs and social welfare programs on track. He also pointed out that the longer the country stays on a debt crisis trajectory, the harder it will be to recover.
The U.S. Department of Treasury welcomed the deal and said it wants to see Argentina take steps toward a more sustainable fiscal path. Its spokesperson noted that this support would help the country meet existing debt commitments without creating new problems on the balance sheet.
The U.S. Economic Growth Act of 2024 also provides incentives for U.S. companies to invest in Argentina’s infrastructure, mining, and renewable energy sectors. These incentives are intended to create jobs, boost exports, and diversify Argentina’s economy, which has long relied on commodity exports.
All eyes will now turn to the national parliament, where lawmakers will debate how best to roll out the $20 billion package. If approved, the funding could provide a much-needed boost to Argentine consumers and businesses, giving the city, the region, and the world a breathing space to build a more resilient future.
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