Trump Backs Milei's Re-Election And Lends Financial Muscle To Argentina

2025-09-24 06:12:25

(MENAFN- The Rio Times) On September 22, President Trump declared his full backing for Argentina's Javier Milei and pledged U.S. support to stabilize the economy without calling it a bailout.

Milei cut spending sharply and removed subsidies, bringing inflation down from about 26 percent to under 2 percent by August 2025 while unemployment rose from 5.7 to 7.6 percent.

Behind the scenes, Trump's endorsement aims to lower Argentina 's borrowing costs as it faces roughly $9.5 billion in debt payments due in 2026.

The central bank spent over $1.1 billion defending the peso this year. Milei secured a US$20 billion IMF program and $4 billion in World Bank investments to rebuild reserves.

This high-profile U.S. support also strengthens Milei at home before October's legislative vote, where Peronists lead Buenos Aires province polls 47 percent to 33.8 percent.

Washington signals its preference for pro-market governments, hoping political backing and financial tools will lock in lasting stability in Latin America's third-largest economy.

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