WASHINGTON – The Trump administration is preparing to extend an additional $20 billion in financial support to Argentina, leveraging a combination of sovereign fund investments and private sector contributions.

This new funding initiative is set to complement the existing $20 billion credit swap agreement that the U.S. Treasury recently established with Argentine President Javier Milei’s administration. The goal is to stabilize Argentina’s struggling currency.

“We’re in the process of developing a $20 billion package that will enhance our swap line with private banks and sovereign funds, which I anticipate will primarily engage in the debt market,” Treasury Secretary Scott Bessent announced to reporters on Wednesday. He described it as “a private-sector solution,” adding that numerous banks and sovereign funds have shown significant interest.

During a meeting at the White House on Tuesday with President Milei, President Donald Trump emphasized his administration’s desire to assist their “neighbors” through this aid package. However, he noted that the financial support could be reconsidered if Milei’s party does not succeed in the upcoming October 26 midterm elections.

“If he loses, we will not be generous with Argentina,” Trump stated.

The Argentine peso weakened slightly Wednesday after Trump’s comments. The peso depreciated about 0.7%, with the dollar — the currency Argentines rely on to save — trading at 1,395 pesos, compared with 1,385 pesos the previous day.

On Wall Street, shares of major Argentine companies rose slightly after dropping as much as 8.1% Tuesday upon Trump’s comments.

In Argentina, the opposition’s criticism was swift.

Former President Cristina Fernández, who is under house arrest after a corruption conviction, wrote on social media: “Trump to Milei in the United States: ‘Our agreements depend on who wins election.’ Argentines … you already know what to do!”

Martín Lousteau, president of the centrist Radical Civic Union, said “Trump doesn’t want to help a country — he only wants to save Milei,” and that “nothing good can come of this.”

Maximiliano Ferraro, head of the opposition Civic Coalition, called Trump’s comments “a blatant act of extortion against the Argentine Nation.”

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Vulcano reported from Buenos Aires, Argentina.