President Donald Trump. PHOTO: – / Instar Images / Profimedia
The President of Argentina, Javier Milei, praised his ally Donald Trump on Wednesday and said he saved the United States and the world from a “catastrophe”, invoking the American president's policies and trade, AFP reports.
“We are not (…) the only ones who make difficult decisions imposed by this historical moment,” said the right leader of Argentina in the UN General Assembly.
“President Trump, in the United States, also understands that it is time to reverse a dynamic, leading the United States to a catastrophe and we know that a catastrophe in the United States is a global catastrophe,” Javier Milei said.
His speech took place on the day of Washington announced that he is in discussions with Argentina for a $ 20 billion swap line, meant to calm the markets before the intermediate elections in October.
Last week, the Central Bank of Argentina intervened in support of the national currency, which is affected by investors' concerns that are afraid that a defeat of Milea in the intermediate elections could affect her austerity program.
Following the discussions that took place on Tuesday between Trump and Mile of the UN General Assembly margin, the US Treasury Secretary, Scott Bessent, announced several measures to support Argentina, one of the main Latin Americans of Washington.
In addition to $ 20 billion swap line, he said the treasury is ready to purchase denominated bonds and make a stand-by loan available.
Swap lines are transactions that usually involve two central banks that agree to change their coins to a fixed exchange rate for a fixed period.
It is unclear for now if discussions with Argentina involves the US Federal Reserve.
Mile, which has implemented radical austerity measures to control inflation and to produce balanced budgets, enter the following legislative elections weakened by the defeat suffered in the recent elections in the province of Buenos Aires.
