Secretary Scott Bessent says the United States Treasury is in negotiations for a $20 billion swap line with Argentina after a meeting he and President Trump had with President Javier Milei.

The Trump administration is trying to prop up one of MAGA world’s favorite Latin American leaders as he faces the first serious financial crisis of his two-year tenure.

“We stand ready to do what is needed to support Argentina and the Argentine people,” Mr. Bessent said in an X post on Wednesday.

Mr. Milei — a self-described “anarcho-capitalist” who sailed into office on a populist platform of economic reform — has been working to curb runaway inflation and restore growth since winning a landslide election in 2023, but his party lacks a working majority in the Argentine congress.

Mr. Milei has promised to lower taxes, cut government budgets, and end stifling regulation that has hindered economic expansion.

The International Monetary Fund says Mr. Milei’s policies have started to work to undo years of left-wing Peronism. Inflation has dropped from more than 200 percent to 35 percent, the lowest in five years, and IMF projections have it falling to below 10 percent in the coming years.

But the South American country has faced a market selloff of its peso currency and plunging asset prices since the opposition party won local elections in the Buenos Aires province last month. Those wins have unnerved investors. Argentina holds a wider midterm election in October.

Terms of the deal are still being negotiated but news of the plan has already helped Argentinian bond and stock prices recover much of their post-election losses. 

Mr. Bessent says the Trump administration is working closely with the Argentine government to prevent excessive volatility.

“Argentina has the tools to defeat speculators, including those who seek to destabilize Argentina’s markets for political objectives,” Mr. Bessent said in his post. “I have also been in touch with numerous US companies who intend to make substantial foreign direct investments in Argentina … in the event of a positive election outcome.”

Mr. Bessent has called the South American country a “systemically important US ally” and earlier this week said the United States Treasury was considering currency swap lines — with U.S. dollars being used to lend to Argentinian banks, direct currency purchases, and purchases of U.S. dollar-denominated government debt from the Treasury’s exchange stabilization fund. He added that other options could also be considered.

After Tuesday’s meeting, Mr. Trump said Mr. Milei inherited a “total mess” and called him a “very good friend, fighter, and WINNER,” in a Truth Social post that endorsed him for re-election.