In a week marked by market volatility and political crosscurrents, Argentine President Javier Milei confirmed that his government is deep in negotiations with the U.S. Treasury for a significant loan. The move, intended to help Argentina meet its looming debt payments in 2026, comes as the country faces mounting financial pressures and a critical legislative election just around the corner.
Speaking in Córdoba on September 19, 2025, Milei told La Voz del Interior, “We are working very hard, we are very advanced.” He emphasized that while negotiations take time, the government is making steady progress. “Until it’s confirmed, we won’t make announcements. But yes, we are working hard, we are very advanced, and it’s a matter of time,” he added, according to La Voz del Interior.
Argentina’s economic team has its hands full. The country faces two major debt maturities next year: $4 billion due in January and another $4.5 billion in July. “We knew this year would be very complicated and had already begun developing strategies to cover Argentina’s payments next year,” Milei explained in his interview. The government’s proactive approach reflects both urgency and a sense of realism about the country’s fiscal obstacles.
But the backdrop is anything but calm. Since mid-year, Argentina’s financial markets have been rattled by growing uncertainty. The S&P Merval index of leading Argentine stocks has tumbled 15% in September alone. Sovereign dollar bonds have suffered even steeper losses, dropping between 21.5% and 30.7%. The country’s risk index has soared to 1,454 basis points—its highest in a year—while the peso has depreciated by 10% against the U.S. dollar this month, according to reporting from (.).
What’s driving the turbulence? Milei squarely blames the opposition. “We have been torpedoed since February so that the plan does not work. They want everything to break. We are going to have a great election to carry out the reforms,” he said during his Córdoba visit, as reported by (.). The president attributes the market’s nervousness to what he calls “political panic” stoked by rivals ahead of the October 26 legislative elections.
Meanwhile, the Central Bank has been forced to intervene aggressively, selling a total of $1.11 billion between September 17 and 19 to try to stem the peso’s slide and calm exchange rate pressures. Yet, so far, these efforts have done little to reverse the negative trends. The dollar’s price in local markets has surged above 1,500 pesos, reflecting both local anxieties and broader investor skepticism.
Despite the turmoil, Economy Minister Luis Caputo has sought to reassure investors and bondholders. On September 18, he appeared on the livestream program Las Tres Anclas de Carajo, stating, “We will ensure not only the January payment but also June’s. We haven’t announced it because it’s not finalized yet. If anyone thinks that after we avoided default in 2023—when we inherited practically nothing—we’re going to default now, they should know we won’t.” Caputo’s message: the government is committed to avoiding default and securing the necessary financing, even if the final details are still being hammered out.
Support from the United States appears to be a key part of Argentina’s strategy. The negotiations center on a potential loan from the U.S. Treasury, possibly drawn from the Exchange Stabilization Fund (ESF)—a special credit line designed to bolster reserves during periods of market turbulence. The idea isn’t without precedent: in 1995, the U.S. used the ESF to grant Mexico a $20 billion loan, which was repaid three years ahead of schedule, including $500 million in interest, as noted by (.).
U.S. backing for Milei’s economic reforms has been visible throughout the year. In April, Treasury Secretary Scott Bessent made a ten-hour visit to Argentina, expressing strong support for the administration’s libertarian policies after the country lifted capital controls. During closed-door meetings, Bessent was explicit about U.S. willingness to help. “If Argentina needs it, in the event of an external shock, and if Milei stays the course, we would be willing to use the Exchange Stabilization Fund,” Bessent said, according to Bloomberg and (.).
Preparations are also underway for a high-profile trip by President Milei to New York on September 21. There, he will participate in the United Nations Assembly and receive the Global Citizen Award from the Atlantic Council—an honor recognizing his government’s economic reforms. The award will be presented by none other than Scott Bessent himself at the Ziegfeld Ballroom, just a stone’s throw from Central Park. Kristalina Georgieva, managing director of the International Monetary Fund (IMF), has also been invited to the gala, signaling international recognition of Argentina’s reform efforts. However, as of now, no bilateral meetings with the U.S. Treasury or the White House have been confirmed.
Adding another layer of intrigue, there is talk of a potential meeting between Milei and former U.S. President Donald Trump in the weeks leading up to the October elections. Trump’s Republican administration has reportedly offered support for Milei’s libertarian agenda, further cementing the strategic ties between Buenos Aires and Washington.
Yet, not all observers are convinced that a loan from the U.S. Treasury is a done deal. While Bessent’s statements have been encouraging, sources in Washington have cautioned that negotiations are still ongoing and any agreement would likely be contingent on Argentina maintaining its current economic course. The Mexican experience in the 1990s looms large as a model, but also as a reminder of the strict conditions and oversight that can accompany such international support.
For now, the Argentine government’s message is one of cautious optimism. “We’ve been working on it; these negotiations take time,” Milei reiterated. “But yes, we are working hard, we are very advanced, and it’s a matter of time.” The stakes could hardly be higher. With financial markets on edge, the peso under siege, and the political calendar ticking down to a pivotal election, Argentina’s next moves will be closely watched both at home and abroad.
As the country braces for what could be a defining moment, the outcome of these negotiations—and the reforms they are meant to support—will likely shape Argentina’s economic trajectory for years to come.